When you go into a Dollar Store, you expect everything in the store to be priced one dollar. If you go in any other store, you would think something was wrong if everything in the store was available for the same price.
What is your pricing policy? If you are like most CPAs and other professional services providers, you bill clients based on time spent on the work. You clock the amount of time you spend on the project and multiply by your hourly rate. Thus, if conducting an audit for a business client takes 15 hours and your established hourly rate is $300 per hour, the bill will be $4,500.00.
Your challenge today is this:
Look at all of the services you offer. Are they all worth the same price to the client? Do they all require the same amount of knowledge or expertise?
Please try the exercise and leave a comment for everyone telling us what difference it would make in your revenue and your profitability if you priced the least valuable or the service that required the least knowledge and expertise at your basic rate and priced everything else as some increase over that price.
Please share your insights with us by leaving a comment.