Here’s what you’re looking for: Jody Padar

PRICING, FEES & BILLING RATES

Use Tech to Make Employees Happier

Stop scouring for talent that doesn’t exist. 

By Jody Padar
The Radical CPA

If you’ve posted a job for an accountant in the past few years, you know people are hard to come by. The number of responses you received was likely down if you were lucky enough to find any at all.

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According to a recent AICPA Trends Report, the number of people graduating with a bachelor’s degree in accounting is down, and we’ve seen a steady decline since 2015. All this while half of U.S. CPA firms have increased the number of new graduates they want to hire. A lot of us are looking for staff that simply does not exist.

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MARKETING & SALES

Price Advisory Work by Value, Not Time Spent

Stop undervaluing yourself. 

By Jody Padar
The Radical CPA

As a professional in the industry, you may find some of what you do easy. Just because you find it easy doesn’t mean it isn’t valuable and worth more than the time you put into it. If it were truly easy, your clients would be doing it themselves rather than paying you.

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Undervaluing ourselves and what we bring to the table is a chronic problem plaguing accountants and CPAs. Why do I say this? Because people pay more for the luxuries they value. Let’s look at a comparison:

Today, the MSRP of a Cadillac Escalade is over $93,000 while the MSRP of a Chevy Suburban is slightly under $64,000. If these automobiles were priced according to the time it takes to make them, plus the cost of their parts, the difference between their retail prices would probably be far less. To maximize profits, GM spends a lot of time and money researching how much their customers value their different products. Certainly, the brand makes a difference, but the Cadillac also offers a more luxurious package. It doesn’t cost GM a lot more money to offer these luxuries, but their customers place a much higher value on them, and GM understands that value.

Pricing according to value really isn’t a radical concept!

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PRICING, FEES & BILLING RATES

How the $25K Rule Works in Pricing

Toss the timesheets and give your clients more value.

By Jody Padar
The Radical CPA

Consider the $25K Rule.

Because this method requires heavy lifting on the front end, a good rule of thumb is to only value-price engagements of $25,000 or more. If the client falls below $25,000, they are eligible for a fixed price or fixed price plus a value add. This rule is important because if your client is a small business, it doesn’t matter how much value they perceive in your services; they will not be able to afford value pricing above a certain level.

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Most services are fixed-priced, but based on conversations with the client, those prices may drop or be raised accordingly. Some of the data points used to set pricing are the PITA factor (pain in the a#%) and the client’s gross revenue.
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ABOUT US

Advisory Opportunities Expand as FICA Tip Credit Rules Shift

Advisory Revenue Strategies: Navigating the New FICA Tip Credit Landscape with Jody Padar – Register | Learn more

Webinar with Jody Padar, Jan. 16 – Register | Learn more

By CPA Trendlines

A major shift in the federal FICA Tip Credit framework is opening new advisory revenue opportunities for accounting firms, as lawmakers and regulators move to redefine who qualifies for the long-standing payroll tax incentive.

CPE Webinar: “Advisory Revenue Strategies: Navigating the New FICA Tip Credit Landscape.” With Jody Padar. Jan. 16, Noon ET. 1 CPE. $49.50. Register | Learn more

Those changes will be the focus of a Jan. 16 webinar led by Jody Padar, CPA, titled “Advisory Revenue Strategies: Navigating the New FICA Tip Credit Landscape.” The one-hour session runs from 12 p.m. to 1 p.m. ET.

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ADVISORY & CONSULTING

Why Offer Three Service Levels?

Hand drawing a rainbow-colored 3

You still can add on other services.

By Jody Padar
Radical Pricing – By The Radical CPA

A tiered service offering should provide your clients with three options. According to experts in mindset and pricing, if you provide three options, people will usually choose the one in the middle. That’s the one you are aiming for them to buy.

Also, don’t forget that people buy the payment, not the car. There’s an entire mentality around monthly pricing. If you tell a client it’s a $24,000 engagement, they will balk. They would rather pay $2,000 a month than the full amount all at once. Of course, some clients will offer to give you the full engagement amount up front if the price is discounted. From a cash flow perspective, you can offer a small discount if a client is willing to pay this way.

Creating your service packages is not a one-size-fits-all activity. There should be different tiered service options for each client persona. It is also important for clients to know that they can upgrade or downgrade their service level when needed.
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