THE RADICAL CPA

When to Change Your Price

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Five issues to consider.

By Jody Padar
Radical Pricing – By The Radical CPA

What is the lowest monthly fee paid by any of your clients? You probably don’t want to bring on any new clients at a lower fee, so use this as your new business baseline. No one enters your firm without paying this baseline monthly service fee.

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However, the question remains whether the client will be billed on a fixed-price or value-priced basis. Here are five issues to consider as you make this decision:

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The Right Questions Lead to the Right Clients

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Seventeen things to ask when scoping.

By Jody Padar
Radical Pricing – By The Radical CPA

Using subjective questions helps you assess what the prospective client considers valuable. This means understanding which services and solutions they see as having the biggest impact on their financial health. It also gives you insight into where they are hurting most in their business.

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This process is time-consuming because it sets the stage for your relationship moving forward. Take your time and collect all the data, documentation and subjective input so you can gain a holistic view of the customer’s current situation. Let’s take a look at some of the questions you can ask and why they are important.

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How to Choose Which Clients to Scope

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It’s all about risk.

By Jody Padar
Radical Pricing – By The Radical CPA

Scoping is a time commitment, so know that the client is worth the commitment and they have the revenue to back it. Start by setting a minimum price point you will charge for the assessment process. If the client falls below your threshold price point, it doesn’t mean you’re not going to scope them, it just means the process will be less complex and can probably be done within an hour.

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For smaller clients, it helps the process if they arrive at the assessment with all the necessary information. You can look at their QuickBooks data and tax returns to get a strong sense of what they need and how long it will take to deliver. Scoping a small, straightforward client will become second nature with time. But be careful about being too casual when scoping smaller clients. If you miscalculate, you are still opening your firm up to risk.

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Assess Your Client’s Needs

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Make this a formal process.

By Jody Padar
Radical Pricing – By The Radical CPA

A client assessment is an onsite or virtual session where you observe the client’s accounting system on which you’ll be working. This is your opportunity to see how they run their business: their software, their processes and who does what. This is when tasks and responsibilities are clarified and assigned. Both the client and your firm need to understand their responsibilities in this new partnership.

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This assessment also allows you to fully understand the client’s service needs. It is a real-world assessment of services, budget and the work required to provide deliverables. It will also allow you to understand what it will take to onboard them. Again, this assessment goes both ways. It’s worth assuming you have competition, so take advantage of this time to impress the client with some consultative advice demonstrating the value you bring to the table – this is especially true if you are charging for the assessment.

One of the key benefits is the ability to limit your risk and as you:

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Rule #1 of Scoping for Alignment

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Plus three more basic steps. 

By Jody Padar
Radical Pricing – By The Radical CPA

How often have you heard the old saying about having two ears and one mouth because listening is twice as important as talking? Hopefully, often, because it is as true as anything I’ve ever heard. Scoping is all about listening, so when you make a presentation, you’ll know what you’re talking about, and the client will know you know.

MORE by Jody Padar
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

Here are four basic steps you can follow to make sure you and the client are in alignment when the time comes to start a new project or present to a potential new client:

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