Pricing

On a recent visit to a local chip shop I was met with the reply "We don't do large chips" when asking for a bigger portion.  I must admit, I was slightly thrown by the reply.  

If you're a regular reader of this blog you may already know my thoughts about only offering a single size of product or service.  I couldn't believe a shop like this didn't see the dangers.  That made me think, though.  After years of speaking to bookkeepers about the same thing, not everyone gets it yet.

The Missed Op…

One of the biggest conversations I have when it comes to pricing is with presenting three price points, something I call menu pricing.  Understandably, many bookkeepers doubt the importance of this when they offer their client a customised solution based on their needs.  However, presenting three distinct price points as a starting point can make a significant difference in attracting and retaining clients.  I wanted to take a few minutes of your time to explore the benefits of offering three pr…

Many bookkeepers are still charging less than £20 an hour, scared that they have clients who can't or won't pay their rates if they were to increase.  

There's also a fear that increasing prices may alienate potential new clients and have them in search of more reasonable prices.

While this can be true for a small number of clients (normally those you wouldn't want in your practice) the majority are looking for better value rather than cheaper prices.

Here are 10 ways you can begin to get you…

Since launching our brand new pricing system, Ekela, there's been a question that's come up a few times.  Why can I only quote monthly?  Why can't I quote annually?

Well, there's a really great reason for that.  Let me explain.  

Ekela is built to be something that no other pricing system is.  It's built to take advantage of everything I've been teaching from pricing over the last 7 years.  Based on research from some of the top names in behavioural economics, it pulls together the best advice…

Go back a few years, and you’d find that most bookkeepers charged by the hour. It was crazy on so many levels and I spoke loads about why. Fortunately, time has moved on and the majority of bookkeepers now quote with fixed prices.

While this is better for clients, it’s introduced a very new type of crazy. The crazy of offering one single fixed price. However personalised for a particular client it’s more than likely the WRONG price.

We all place different values on the same item, so it’s virtu…

Wherever I look I see this same question.  How much should I charge for....?

I've even found a whole Facebook group set up just to share prices.  It's full of questions like "How much should I charge for £40k turnover with 10 invoices?" 

While everyone has an opinion on what the "going rate" is, it's very difficult to really pin down what a bookkeeper should charge in certain circumstances.  Every bookkeeper is unique and every client is unique.  We all see value in very different ways.  Even …

The process of onboarding new clients is your opportunity to set expectations and boundaries for the future of your relationship.  

The process of onboarding has become more time consuming over the last few years. Money laundering checks are becoming more in-depth, with online checks costing money to carry them out.

The checks can sometimes involve a bit of back and forward to ensure that you have the documents to let you tick all of the boxes required.

It's not just a legal process, but also…

When you price your service you want to put them at the point where the majority of your buyers are able to afford them, thus selling to more people.  This makes absolute common sense.

It's also a huge mistake that so many bookkeepers around the country are making day after day.  

When I talk about my idea of a minimum of £35 per hour price point, I'm often met with the reply "That's fine for other places, but clients here won't pay that much"

It's almost like people in that part of the count…

I made the crazy decision that a Saturday trip to IKEA was a great idea this weekend.  After being carried along in the crowd around the store, I noticed the same thing with virtually every product.

IKEA have planned their whole store to encourage you, the shopper, to spend more money with them.

They have a few base products, and then add-ons to allow you to personalise that product to your requirements.  

They don't want you to buy a KELLAX shelving system at £39.  They want you to add four …

I believe that bookkeepers should be able to charge at least £35 per hour.

When I say that, how does that make you feel?

If you're like most bookkeepers I speak to, you probably let out an audible gasp. Or shouted at the screen "yeah, right!"

If you're charging somewhere between £12 and £20 you probably think £35 an hour is unachievable.  If you're charging up to £25 you probably think you're about the maximum you can charge. If you're charging less than £12 you must think I'm on another plan…