Today’s Bissett Bullet: “It is important to know the cost price of any given job.”
By Martin Bissett
It is not an exact science. You can calculate that cost with any given hourly recovery rate and however you see fit, but you need to know what it is. This is NOT to inform your pricing, but to inform what your break-even is. When you set your fees, they must never equate to less than cost or you are loss making, and unless there is significant long-term benefit to doing so on a short-term basis, you don’t want that.
Sounds obvious, right? So how come so many accounting firms don’t get acquired because they don’t make any money?
Today’s To-Do:
If you were to be honest with yourself, how many prospective clients really do not want to change their accountant, and how many just did not see the reason to? Now, on that basis with that reality confronted, be stronger in your next meeting with a prospective client.
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