If you are an experienced accountant or bookkeeper, then you are certainly familiar with the concept of the billable hour. How do you feel about it? Don’t you think it has become obsolete to charge for your services based on the time you need to complete the task has become obsolete? Value pricing is the key to charging what you are worth instead of charging hourly. Here are the top 5 five reasons why you should move to this hybrid form of billing for your services.
1. You will minimise costs and maximise profits.
Value pricing involves thinking ahead. You should identify your client’s needs and problems, try to find similarities with those that previous clients have had, and consider the scope of the project. This will help you save time and complete the tasks within set schedules.
When working with multiple clients, you can find a pattern that works with a certain group of those clients. You can apply some of the past practices, review and upgrade them. This way, you won’t have to count hours whilst you can earn more, which is a win-win.
2. You will appear more professional.
Clients care more about your expertise than about the time you need to complete a matter. When you quote them a fixed fee right away, there’s a great chance you will make them interested.
Clients nowadays want to get an ordinary service, something the largest portion of the market can’t provide. Anything different to charging hourly will instinctively give them the impression of a better quality of service. If you give them something they don’t get elsewhere that often, they will have a better perception of you and your services.
3. You will build stronger relationships with your clients.
Clients have had enough of invoices and billing disputes. You want to make sure the trust between you and your clients remains intact. With value-based billing, they don’t have to worry about unanticipated expenses. When you clarify the costs of your services upfront, there will be no unpleasant surprises for your clients, which will make your relationship grow stronger.
4. You will attract higher-value clients.
You should strive to connect with people who value and understand your work. Chances are, clients who care about price only will walk away when you give them a quote. However, this is actually a good thing because they are likely not your target clients.
Higher prices typically reflect a better quality of service. Thus, high-value customers will set the price aside and put quality and effectiveness first.
5. You will attract more future prospects.
Value-based pricing involves higher prices. If you back up these prices with offering a top-notch service, you will build a better image of your business in the marketplace. Most clients are willing to pay more if they can tell you are confident about your work. Besides, word of mouth and personal recommendation are the best way to attract more clients. When you have a good reputation, it won’t matter at all if you are more expensive than your competition.
Don’t be afraid of raising your rates. Although not always the case, what you quote can send an important message out to the market. If you don’t value your work, who else will? Here we have talked about the five reasons why you should move to value pricing. BookkeeperQuote can help you increase profitability and charge what you are actually worth. Contact us for more info about our online pricing software.