Can a 1% price increase really deliver an 11% profit increase for accountants?
The fastest and most effective way for any business to realise its maximum profit is to get its pricing right. The right pricing structure can boost profit faster than reducing costs or increasing your sales volume.
On the flip side the wrong pricing structure can shrink profits just as quickly.
Should it be any different for accountancy firms?
Of course not. Which means that reviewing the way your accountancy firm prices your services should be treated very seriously.
It's understandable that most accountants are reluctant to investigate initiatives to improve pricing structures for fear they will alienate, frighten or lose clients.
However the result of not managing your pricing process brilliantly can profoundly limit your firm's profitability and your firm's capital value. And also limit your clients' perception of the value they get from your firm.
Getting your pricing right is one of the most fundamental and important functions for any business manager and should be a priority job in your firm.
Two studies by McKinsey & Co and A.T. Kearny (both global consulting firms), suggest that pricing has the biggest influence on the profits of your company. And the science of behavioural economics shows you simple and effective ways to present pricing so you can increase your firm's profits and capital value (and make clients feel better about your firm too).
Please click here more about the success of profitable pricing and to read the details of these studies.
Just think – what impact could better pricing have on your bottom line profits?