43. 6 Strategies To Increase Your Prices

Business Advisor Podcast

In this episode Amanda C. Watts tackles a crucial topic for CPA, accounting and bookkeeping professionals: raising prices. She explores the dangers of "quicksand pricing," and delves into six effective strategies you can use to justify and implement price increases for your current client base, with confidence and integrity.

Key Takeaways

• Escape the Quicksand: Move away from "quicksand pricing" where low initial prices attract a flood of clients but ultimately strain your resources. Transition to a value-based pricing model that reflects the true worth of your services.
• Enhanced Service Offerings: Develop service packages that go beyond basic accounting and bookkeeping. Consider including quarterly consultations, bookkeeping packages, or helpful software like Dext to offer a more comprehensive and tailored service to clients.
• Repositioning Based on Value: Shift your focus from cost-based pricing to value-based pricing. Clearly communicate the additional benefits and superior service that come with the higher price tag, justifying the increased cost.
• Market Rate Alignment: Research and adjust your prices to keep pace with current market rates for similar accounting services. This demonstrates professionalism and ensures you can offer competitive, high-quality service.
• Specialization and Premium Positioning: Consider specializing in a specific client base or industry. This allows you to position yourself as an expert or premium provider in that niche, justifying higher fees.
• Managing Supply and Demand: Utilize pricing as a tool to manage your client workload. By strategically raising prices, you can ensure you can continue to deliver high-quality services without being overloaded.
• Long-Term Cost Management: Factor in the gradual increase in operational costs over time, such as software subscriptions, office leases, and staff salaries. Raising prices can be a necessary adjustment to maintain profitability and service quality in the long run.

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