Most businesses have some kind of price list highlighting the services they offer and the price each one costs:
The list goes on.
Yet why is it that a large majority of accountancy practices keep their prices hidden away under ‘lock and key’ in the head of the partner/owner?
This is not to say that you should immediately publish a price list of your services on your website (although a transparent approach like this does have its merits…)
Simply having a price list for internal use and for use with prospects can have many benefits for your practice.
So here are 4 reasons why having a pricing list in your practice is a no-brainer:
1. It makes your practice scalable
As a partner, if you are solely responsible for quoting and winning new business, then your practice isn’t scalable.
You can only grow the practice to the point where you are working at maximum capacity, and when that happens, you’ll find yourself burnt-out and frustrated.
The prices are no longer stuck in your head, and instead they are available for others to use, which will create scalability in your practice.
2. It makes your pricing consistent
I’ve heard the same story told many times…
- Partner A quotes a client £3000 for the year to receive XYZ.
- Partner B quotes a different client £2000 for the year to receive the same XYZ.
The same example could be for Manager A and Manager B.
There’s no consistency.
And when this happens, you risk leaving money on the table each time you sign up a new prospect.
With a pricing list in place, your prices will remain consistent throughout the practice regardless of who is providing the quotation, which means you never leave money on the table and maximise the value of each client.
3. Clients are more likely to say ‘yes’
Let’s imagine 2 scenarios…
Scenario 1 – you go to a restaurant and on the menu, there are no prices. You pick what you want to eat/drink and the waiter tells you that the total bill comes to about £67.98.
Scenario 2 – you go to a restaurant and on the menu, there are prices listed next to each item. You pick what you want to eat/drink the waiter tells you that the total bill comes to £67.98.
In the first scenario, chances are you would probably be sat there thinking; “What? Are you sure it’s that much? How do you know? Where have these numbers come from?”
And in the second scenario, you probably wouldn’t think to question the total bill, after all, you picked what you wanted from the menu and you could see how much each item cost beforehand…
The same logic applies when you’re quoting clients.
If they don’t know how much each individual service costs, when you tell them the total amount, they’re more likely to question it, or even say no.
In contrast, if you present them with a list of all your services and prices, and they pick and choose what they want, they’re much less likely to question or say no to the total amount.
4. You charge for things you might not ordinarily charge for
When you sit down to create your pricing list, it’s a good idea to write a list of things you might ordinarily do for clients for free, and add a price next to them.
Here is a great example from one of my clients Antony:
Just think, with a pricing list in your practice, how much additional revenue could you make each year on services you would otherwise do for free?
If you already have a price list, fantastic!
When was the last time you reviewed it? Who else can you give access to?
(My clients have access to my ‘Pricing Maximiser’ spreadsheet. This shows the minimum, maximum, and average prices for all the services my clients provide. That way, they can see how their prices stack up against others, and increase them where possible)
And if you don’t already have a price list, find a 2-hour timeslot in your diary this week to sit down and write out a list of all the services you provide (paid or free) and start to add your fixed-fee prices next to them.
Once you’ve done that, you can either keep it basic e.g. in Excel, or add your price list into some quoting/proposal software to use when signing up new prospects.