Are You Earning What You’re Worth?
Value pricing gains traction. Step 1: Change the way you think about your business.
Start here: Join the study; get the benchmarks.
by Rick Telberg
At Large
Accountants are catching on to the notion that their clients may place a greater value on their services than they think.
Accordingly, there’s a discernible movement toward so-called value pricing or value billing models, in which rates are based on the value perceived by the client and away from the age-old model of the billable hour, or the common market pricing model based on what the competition is charging. According to Bay Street Research, about 27 percent of CPA firms say they use value pricing, compared with 26 percent for market pricing and 35 percent using billable-hour (cost-based) pricing. The remaining 12 percent cited a mixture of strategies, including combining value pricing with market and/or cost-based methods.
Value pricing was barely a blip on many practitioners’ radar screens before author and lecturer Ron Baker began evangelizing it at CPA conferences in the 1990s. But CPA consultant Charles Larson deserves the credit for writing the first book on the movement long before. Today, it may be finally be becoming mainstream. See How Much Do You Think You’re Worth? READ MORE →
