By Ed Mendlowitz
The CPA Trendlines Practice Doctor
QUESTION: I tried value billing and it didn’t work. I would rather bill my business clients on a fixed fee for my services.
RESPONSE: Actually, you are value pricing when you do the fixed fees. You confused value pricing with value billing. Value pricing is where you sit down with the client and you jointly determine the price before any work is done.
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Value billing is where you try to get an extra payment after the work is done. I believe the best way to determine a fee for recurring services is to set the fee with the client in advance of performing any work. I’ll explain.