The slides from my Effective Pricing for Accountants workshop in September 2012

1. 5 September 2012
Advanced pricing
mentoring group

3. Pricing effectiveness quotient
Frequency of
Knowledge Effectiveness
use TOTAL
Value drivers
Pricing
Demonstrating
value

4. Pricing effectiveness quotient
Frequency of
Knowledge Effectiveness
use TOTAL
Value drivers 7 5 5 17.5%
Pricing
Demonstrating
value

5. About the day
9.30 Introduction
10.50 Coffee/tea break
12.40 Lunch
2.50 Coffee/tea break
4.30 Close

6. Last
time

7. Ideal client profile
Little things
What do we measure
Your practice as a “club”

8. £3.50
£3.54

9. £7.80
£7.88

10. £0.95
£0.96

11. A
thought

12. Hours = 10
Tax saving = £50,000
Success = 90% +

13. Fee = 25%
Fee = £12,500
Rate = £1,250 ph

15. Tangible versus
intangible benefits,
i.e. solutions vs
experience
 Perceived value =
f(
Perceived benefits
Perceived price

)

16. Gianni
Franco

17. Q

19. Questions
=
Answers

22. Key learning points
1.
2.
3.

23. Putting it into
practice

24. Tangible versus
intangible benefits,
i.e. solutions vs
experience
 Perceived value =
f(
Perceived benefits
Perceived price

)

25. Mortgage references

26. Mortgage references
How to add value
How to price
How to explain

27. Putting it into
practice
(again)

28.  Menu pricing (top down pricing)
 Options
 Language
 How to price (link price to value)
 Add tangible value
 Add intangible value
 Benefits
 Unique selling points
 Presentation
 Guarantees
 Service standards
 Payment terms

29. insert practice name
I enclose a cheque for £ ________ (inc. VAT) made payable to Bloggins & Co]
I wish to pay £ ________ by: Visa q Mastercard q
Card No: Security No:
Start date: / Expiry date: /
Cardholder’s name:
Cardholder’s address:
Signature:

30. Key learning points
1.
2.
3.

31. The biggest
research
study
in the
world

32. Behavioural
economics
Loss aversion
Social proof
Inertia
Accommodation

34. “Do defaults
save lives?”
Eric J Johnson & Daniel
Goldstein

36. Step 1
There is always a default…
So make it the outcome you want
“Total Accounting Solution”

37. Choice
architecture

38. Behavioural economics
 Loss aversion – we hate the idea of missing out
 Social proof – we like to do what others do
 Inertia – we go with the status quo
 Accommodation – we quickly get used to new
status quo

39. Step 2
 Offer it to everybody as the default
 “Our standard service is what we call the Total Accounting
Solution”

40. Step 3
 Carefully designed script to explain they can opt out
 “Most businesses like yours go for of our Total
Accounting Solution because it gives them everything
they need to earn more money with less effort, and also
pay less tax. But if you don’t think it’s the best solution
for you, you can always downgrade by taking out parts of
the package.”

41. Step 4
 Carefully designed script if they want to opt out
 “If you take that out of the package the price comes down by
£300, but just to be clear, you then won’t get to see how well
your competitors are doing, and you won’t get a profit
improvement action plan based on those findings, so you may
miss out on extra profits as a result.”

42. And…
 Do it in person – not by post
 Do it with every prospect
 And do it with every client…
… every year until they choose the default
… and it becomes the new status quo

44. Key learning points
1.
2.
3.

45. Key learning
 Most firms with the highest average fees do it
 Design a big package
 Offer it as default – “this is how we do business”
 Opt out, rather than opt in

46. Stretch your
thinking!

47. Conversions Revenue
$197 340 $66,980
Ryan Deiss

48. Conversions Revenue
$197 340 $66,980
2 x $97 977 $189.538

49. Conversions Revenue
$197 340 $66,980
2 x $97 977 $189.538 4.46
x increase
3 x $97 1008 $293,328
People focus on the
$97 not the $291

50. Key learning points
1.
2.
3.

52. Your feedback, and…
Your key actions