A solo practitioner posted the following on LinkedIn which inspired me to give these examples of life changing value.
“When I inevitably pitch it (my services options) to clients, it’ll be much more value-focused. I’m just figuring out how I should present it? Do I force every tax client to have year-round support? Do I allow the option of a bare-bones annual tax prep client? Or do I force them to get the full suite of services? Because all that year-round tax advice IS valuable and I’m giving it away because it’s expected in small firms.”
Value Based Pricing Delivers Life Changing Value
Value Based Pricing enables your firm to deliver life changing value to your clients. Instead of focusing on what kind and number of inputs your firm offers (and how to charge for them), think in terms of delivering outcomes, what I call delivering life changing value. Each client will need different value and would pay for that value.
10 Examples of Life Changing Value
Here are ten examples of life changing value delivered by our clients in the past couple of years. After reading them, think about how you can adapt them to your specific knowledge and expertise and clientele.
- CPA: Clients can effectively sort through complex issues due to unlimited access to the CPA.
- CPA: Owners and Executives use their monthly financial reports to make timely and company-appropriate decisions.
- CFO: Excellent cash flow provides funds for investments for growth.
- Compliance Expert: The firm will receive the revenue they’re counting on because they are perfectly compliant with complex regulations.
- Safety Expert: High risk industries will have confidence that profits are never eaten up by repairs and failure work caused by safety lapses.
- Web Designer: Clients will attract PERFECT FIT clients. These will be fewer in number and greater in quality and will generate long term revenue.
- Attorney: Firms will ensure uninterrupted focus on the future because legal pitfalls are avoided.
- Architect: The home where great memories are made.
- Corporate trainer: Clients and customers rave about the service and attention they receive from employees in every department.
- Conflict resolution expert: The organization’s mission is furthered because they are not endlessly dealing with internal conflict.
COMMIT then PREPARE
We never expect client firms to throw out their current pricing models all at once and implement Value Based Pricing in one fell swoop. That’s a recipe for disappointment or worse.
You start with COMMIT. This begins by understanding all the ins and outs of Value Based Pricing as a concept. We follow this with a Pros and Cons analysis for the specific firm. Every firm has a different list.
Then we imagine scenarios with various clients, some that adopt Value Based Pricing immediately and others that take longer to get there. We consider those that might never want to do business with the firm due to Value Based Pricing.
Next we create a series of timelines to acknowledge the possible time it will take to convert most of the firm’s clients to Value Based Pricing. We answer all the questions that arise from these timelines.
Another step is to estimate revenue from Value Based Pricing engagements. We compare those estimates to revenue from the current pricing model.
Finally, we address all the various firm-specific questions and concerns. It’s never ‘take it or leave it!’
When they’re ready, we ask the firm Owner or Executive if they will COMMIT to Value Based Pricing.
What It Means to COMMIT
When we ask the question “Will you COMMIT to Value Based Pricing?” we are asking if the firm owner will do everything needed to make Value Based Pricing their pricing model going forward. Again, this is not about tossing out the current model and only using Value Based Pricing from that moment on.
COMMIT means, in its essence, that there is no wavering about the decision. That while objections and problems will certainly arise, the commitment to see it through remains steady. If there is any hesitancy or backsliding the effort to phase in Value Based Pricing will fail.
The leader’s own mindset and his or her words and actions form the foundation for success. All the rest will come in due time.
No Newsletter Can Answer All your Questions
I write 600-700 words each week about pricing for knowledge based firms. There’s no way, even in 52 weeks, for me to answer your specific question.
But wait…there is way! It’s called a STARTER call. We spend about 45 minutes talking about your questions and concerns. You’ll get a couple of specific ideas to get you started. There’s no obligation for a paid engagement.
Book your STARTER call now. Email, or text STARTER to 703-801-0345.