THE RADICAL CPA

How to create price packages.

By Jody Padar
Radical Pricing – By The Radical CPA

Packages are the first step toward productizing your services. Your packages define your services as discrete offerings with defined parameters around what they include and what’s excluded.

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The secret sauce to creating a fixed price package with a value add consists of combining several variables:

Deliverables + Client Persona = Well-Priced Packages

Client-Specific Price Point + Market Price Point = Well-Priced Packages

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Your team has to talk to them every day.

By Jody Padar
Radical Pricing – By The Radical CPA

A friend who owned a business services firm in the marketing industry once told me he would rather face waterboarding than resign a hard-won client. However, even he cast a big one aside after his key employee returned from a client meeting in tears. Some things just can’t be tolerated. Your job is to determine where the line should be and to make the decision before a bad client has the chance to negatively affect your company.

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A client’s fit with your firm is every bit as important as their behavior and payment practices. After you adopt a new client-centric, value-based business model, some clients won’t fit in. Some will want to stick with the transactional model of the billable hour. They may not be comfortable with your new direction. Some clients may not even want to pay for your smallest service bundle despite the enhanced service levels it includes.
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Seven steps to setting your price.

By Jody Padar
Radical Pricing – By The Radical CPA

How much would you pay for a bottle of water in the checkout line of a grocery store? Maybe $2 or $3, right? You know it costs more per unit than buying a case of water, but at that moment it’s worth it even though it’s the same bottle of water. Now, let’s assume you just made the long trek back to your hotel room in Las Vegas. They have the same bottle of water sitting there for $10. You’re thirsty and don’t want to walk to find a store, so you pay $10 for that bottle conveniently located in your room. The water isn’t different, but the value at that moment in time is subjective.

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When we think about price, we really need to think about worth. What actually are you bringing to the table? Lots of training. Many years of experience. Vision into similar businesses. It took you years to get here; don’t sell an answer to a question the client asks for the three minutes it took to answer.
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Mechanics do it and so can you.

By Jody Padar
Radical Pricing – By The Radical CPA

Change orders are the result of a well-scoped process. They occur when a client adds a service not included in their original engagement or when a manager or partner requests a service be scoped and priced separately. The client decides whether or not to proceed with the change.

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The process of a change order is similar to taking your car to the mechanic for an oil change. During a diagnostic, they find you need a tire alignment as well. The alignment is not included in the services you bought, but you’re curious to know how much it would cost. Depending on the price, you’ll add it to the original quote, or you won’t.

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Don’t let a partner do this alone.

By Jody Padar
Radical Pricing – By The Radical CPA

Partners, managers and accounting professionals must all understand scope to deliver the right amount of work for the engagement.

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Everyone needs to be aligned. Everyone needs to know what the customer ordered, how to deliver it and where the work ends.

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