Client accounting advisory services can be invaluable to business owners. During tough economic times especially, your clients want guidance as they make the decisions that will make or break their business. However, it can be challenging to set a price for advisory services.
So, to get you started on the road to advisory, here are some strategies for tackling the issue of pricing your services!
Know Your Value
Before we talk about the specifics of pricing, one thing needs to be made clear: your services are valuable. Accounting professionals often undervalue themselves or their work, so your first step is acknowledging that the services you provide make a difference. Then, you need to figure out how you want to charge for the value.
That’s right — fixed fee billing doesn’t work quite with advisory services. When you bring different values to different clients, the cost of your services should reflect this. For example, you might be saving one client $15,000 thanks to your advisory services while you’ve spared another $150,000. Would it make sense for the reward to be the same?
Know Your Client
After acknowledging that your services have value, it’s time to figure out exactly how much. This will change from client to client, which is why it’s important that you understand your client, their business, and how much your services affect their bottom line. Knowing your client and their needs will help you know when they might be ready to take on an advisor AND how you should market yourself for that role.
Needs will change. The same deal your client strikes with you now might not cut it next year. As their business needs and budgets fluctuate, your clients will want an advisor that can bend with them. An advisory package will allow you to be flexible. Your package should include an Initial Planning Day, Scheduled Meetings, and an Annual Planning Event, and whether or not you decide to combine your CAS and your compliance services is up to you. Regardless of which direction you go, you can market your advisory services through menu pricing.
Once your packages are ready, you can start by offering your most expensive package to your client first. Then, you can work down, allowing the high price to serve as an anchor.
Your advice is worth a lot, and it’s time you capitalize on your knowledge by offering that advice to your clients at a price that is fair for BOTH of you. The trick is understanding that value yourself and finding ways to help your clients understand that value. You can start by creating packages, paying attention to your client’s needs, and using menu pricing to market your services strategically. You know your stuff — now, it’s time to share that knowledge with the world!