pricing, fees & billing rates

your clients get more value and your team gets to lose timesheets.

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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it’s a perfect storm. embrace it.

by jody padar
the radical cpa

ron baker is known as the value pricing guru in the accounting space. he was way before his time in separating the price of labor from the value of a product. labor-based pricing is based on the difficulty of doing a task. value pricing looks at everything from the client’s viewpoint. his argument is as follows: the value you provide your customer, regardless of the deliverable, is worth way more than the hour.

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while value pricing isn’t new, automation has driven it to the forefront. automation gives cpas up to 90 percent more time to provide valuable services based on their expertise, knowledge base and experience.
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are you ready? is your competition?

by jody padar
the radical cpa

change isn’t just knocking at your door; it’s kicking it down. we’re in the middle of a major transformation because of new players, cutting-edge technologies and a financial surge. the rules are being rewritten before our very eyes.

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if you consider accounting a giant chessboard, many players are making strategic moves. you have the old-school firms on one side who are navigating a rapidly changing landscape. on the other side, you have the new-school disruptors. these innovative entities are reshaping the industry with cutting-edge technologies and fresh approaches.
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the convergence of trends makes pricing changes imperative.

by jody padar
the radical cpa

the speed of change is faster than ever. how are you going to react to it? that’s what i’m really preparing you for – redesigning your entire business model to become a more client-centric advisor. value-based pricing models are the key component but not the whole story.

more by jody padar
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today’s automation, new competitors, staffing challenges and new technologies are conspiring to bring clients more value than they could have enjoyed before. all of it is shifting the way you need to think about your services, what clients value and how you get paid fairly for the expertise you bring to the table. read more →