How to Build a Growth-Centric Pricing Strategy

Aquila
Aquila

With an eight-point analysis of your firm’s pricing strategy.

By August Aquila
Creating the Effective Partnership

All you need to do is think of any services, professional or commercial, that you have purchased over the last few years. Would you pay a premium rate to a bonsai gardener just to trim a regular tree or shrub? Most likely not, since there would be many a gardener available to do this simple task. However, the price of an open heart surgery would not matter, if the operation would save your life.

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When pricing your services you need to carefully analyze the three key factors

  1. demand,
  2. competition and
  3. costs.

For example, it’s hard to get a premium price for a basic 1040 return because there are thousands of competitors offering the same service as very competitive prices. However, if you are offering litigation services for high net worth divorce cases, then you need to look at the unique characteristics of your services, what is potentially at risk for your clients and the firm’s overall marketing and pricing strategies.

To find out how marketing oriented your firm’s pricing strategy really is, just complete the following brief pricing strategy questionnaire. There are no incorrect answers. The purpose of the survey is to give you a snapshot of where you are today. You goal, then, is to lay out a plan to get you where you want to be tomorrow.