Bookkeeping services are essential for business owners, and the expectations people set for the pricing are changing vastly. With the evolution of electronic bookkeeping services, you have to keep your prices acceptable and competitive.
Charging hourly rates for providing bookkeeping services leads to much confusion, and therefore, you must adopt a more strategic pricing system. While accountants used to charge by the hour previously, customers now prefer a fixed price that they can choose upfront. Hence, you have to consider various factors before agreeing on a particular price.
There are a few factors that you must keep in mind when determining bookkeeping services prices.
Choose the Right Method
There are two basic methods you can adopt when determining appropriate bookkeeping services prices. The fixed pricing method is basically like setting up service options with fixed prices on an overall scale. This means that irrespective of the account size, you will be offering the same price to both.
On the other hand, if you adopt a value pricing method, you have the flexibility to change the price depending on the demands of your client. This means that the price you set for one customer can be different from that of another customer.
There are advantages and disadvantages when you adopt any of the systems. With the fixed pricing method, you can set a fixed price for one time which can be applicable for all your customers. This generally helps to reach your goal faster and helps in your growth as an accountant.
On the other hand, the value pricing method is a little more time-consuming, but you can charge higher prices to clients with bigger demands. Value pricing method generally leads to better and higher profits.
Always Speak to Your Clients
No matter which pricing system you choose, it is always important to discuss and have an in-depth conversation with your client. Every client has different expectations and demands, which you have to keep in mind. It is essential to understand what your clients require even before you can set up a pricing system.
Hence, develop an intricate system of interviewing your client to determine their requirements. An in-depth conversation with your client will help you discover and pinpoint your client’s pain points and work accordingly. This way, you will know what you will have to address as an accountant to provide the best service.
How to Apply Fixed Pricing?
The fixed pricing system is relatively less time-consuming because you need not consider every client’s unique demands. However, in the beginning phase, you will have to develop and agree on all the services you would like to provide and attach a special price accordingly.
Most of the recurring services are relatively easy to put a price on. Try to keep track of the time it takes to consider these tasks and decide on a margin before setting a price tag on them. A good way of getting your clients interested in your services is to provide bundle services at a discounted rate while still maintaining your profit margin.
How to Apply Value Pricing?
Value pricing undoubtedly brings more profit if you do it right. It is especially suitable for those who work with clients hailing from versatile backgrounds. Since it is a very intricate system, it does take more time to get acquainted with.
In the value pricing method, you will have to consider every unique situation that the client throws at you. You will then have to work out a price that will benefit both the client and your business. A good way to set a price is to think about how much a particular client would like to pay.
Be careful when determining bookkeeping services prices. While you do not want to make your services overpriced, you also do not want to undersell your service.