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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