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Pricing Strategies and Billing Rates
By Jody Padar
The Radical CPA
Ron Baker and Ed Kless of the VeraSage Institute are the hands-down experts on value pricing. They do a phenomenal job of explaining how it works and why you shouldn’t track time. I’ve done it for the last eight years and I absolutely love it. I would never go back to time and billing. My quality of life has changed dramatically because of it. What it’s done for the culture of my firm can’t be measured. It’s an intangible. I started doing it because I figured out that there had to be a better way to sell my services. I didn’t want to sell myself by the hour and I found out that it worked without reading all the economic theories. So I continued.
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The technology is only getting faster and better. Eight years ago my payroll only took two minutes using PayCycle. I had to ask myself: how could I make money on it? I believe that the pricing model finally is going to change. Ron Baker was the early adopter and started this 20 years ago. I believe the technology has now caught up. If firms don’t change our pricing model, we’re either going to have 25,000 customers or we’re not going to make any money if we continue to charge by time.