4 proven ways to ensure you master pricing in your Accountancy firm
Mastering the science of pricing and applying it to your Accountancy firm is a source of far greater profits. McKinsey, the global consulting firm, suggest that pricing has a bigger impact on your profits that anything else.
If you are, as a business owner, serious about profit growth…
Shouldn’t you therefore, be equally serious about the science of pricing?
Here are 4 points to help you get started…
1) Collect 3-tier pricing examples from other businesses: Don’t just use guesswork, it isn’t enough, some of the most successful companies in the world use 3-tier pricing, have a look at what they’ve done.
Please see the downloadable tools for examples from EasyJet, TripAdvisor and Starbucks. In the tools, there is even an example of bottom up pricing used by BMW to show that in some cases this can work too.
2) Build a ‘pretend’ tiered pricing offer for your firm: This should be in line with the pricing you have in place now (unless it is something you have never addressed) but have pricing anchors in place and offer one or two different pricing tiers for your firm.
The key is to have a top, middle and bottom price, it is proven that buyers feel more in control if they have options to choose from.
Remember that in business, as in life, no-one likes ‘Hobsons choice’
3) Test and measure with real-life buyers: This is crucial…you’ll never know unless you test it!
DON’T be afraid to get it wrong and DON’T be afraid of criticism. All feedback is good and it will allow you adjust, improve and move forward.
Only when you test your pricing options will you discover which options deliver the best profits for you and your business.
4) Keep testing. Make price testing something your firm does regularly: Once you have arrived at a tiered system, don’t rest on your laurels, keep testing it, changing it and making the necessary adjustments to keep your pricing sharp, your buyers in control and happy and you one step ahead of the competition