We get it – in the world of accounting, competition is fierce, and attracting and retaining small business clients can sometimes feel like a high-stakes game. Discounting services can seem like a quick solution to win over clients, after all, who doesn't love a good deal?
However, it's essential to consider the long-term implications and if this could be effective pricing for accountants.
The Discount Dilemma
- Perceived Value: Offering discounts can unintentionally communicate that your services are worth less than what you charge. This might lead clients to question the quality of your work.
- Devaluing Your Expertise: You've spent years honing your skills, gaining experience, and staying up-to-date with ever-changing tax laws and financial regulations. Discounting may inadvertently downplay the value of your expertise.
- Sustainability Concerns: A race to the bottom in pricing can lead to unsustainable business practices. It's crucial to maintain a business model that allows for growth, investment, and ultimately, better service for your clients.
The Power of Value Adds
Instead of racing to the bottom with discounts, consider the benefits of incorporating value-added services into your offerings. Value pricing for accountants not only sets companies apart from the competition but also showcases a commitment to clients' success.
When comparing prices alone you may be more expensive, but if the proposal in front of them highlights just how much value they are getting the price will become less of a problem.
Remember - you can always remove services from a proposal - reduce the scope not the price!
- Tailored Conversations: Small businesses often grapple with complex financial and process management decisions. By offering personalised conversations about their goals, plans and ideas you become a trusted partner in their growth journey. It also serves as a brilliant opportunity to uncover additional opportunities to deliver advisory services to them.
- Tech Integration and Training: How many times have you taken on a client and they have all the gear and no idea?! Many small businesses struggle with managing their finances digitally. 20% of small businesses reported to Xero that they lack the knowledge and/or skills to implement digitalisation organically. Offering guidance on effective tools and training them how to use them effectively can be a game-changer for their efficiency.
- Streamlined Processes: Help your clients automate and streamline their financial processes. This not only saves them time but also minimises costly errors. (This is a great point to talk to clients about how you can save them time processing payroll and supplier payments)
- Education and Workshops: Host workshops or webinars on topics relevant to your clients, providing them with valuable knowledge and showcasing your expertise. Think about the common questions clients ask and turn the answers into an FAQ sheet or set of videos they can receive during onboarding and throughout the year at relevant times. (i.e when does the tax year end? Why do you need my receipts? Etc) Just because the answers are common knowledge to you, don’t assume your clients know the answers.
Your expertise is your most valuable asset. While it's important to remain competitive, it's equally crucial to recognise the true worth of the services you provide. That's why Telleroo doesn't discount its pricing.
By focusing on value-added offerings, you not only set yourself apart but also demonstrate a genuine commitment to your clients' success.
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