Value Pricing: Some Mischievously Misleading Musings

Recently, a practitioner named Frank Stitely, CPA posted his thoughts in CPA Trendlines on how charging a very high fee for work that only took a few hours can backfire. Understandingly, this post invoked a lot reaction from the proponents of value pricing including me. Continue reading “Value Pricing: Some Mischievously Misleading Musings”

Pricing Your Proposals: Don’t Assume Clients Act Rationally

If you prepare service proposals for consideration by your clients you need to read this post.  In my first lesson in microeconomics I was taught that most demand curves slope downwards from left to right.  For some products they will be steep and for others they will be flatter but for nearly all products (and services) it is posited that lower price will lead to more sales so we were taught. Continue reading “Pricing Your Proposals: Don’t Assume Clients Act Rationally”

Pricing …. again

If there is one universal critical success factor for all businesses pricing must be close to the top of the list and yet it is the least understood and most frequently abused tool in the management armory.  How often do you hear a client say I can’t raise my price because I’ll lose all my customers?  Maybe you even have the same view about your own pricing. Continue reading “Pricing …. again”

Are all your clients profitable to service?

As I have discussed in a previous blog posting, time and billing systems that are in general use masquerade as practice management systems but even those that have the potential to provide useful management information are not generally used for that purpose.  The only “management” support they give is to monitor time charged by people for billing purposes. Continue reading “Are all your clients profitable to service?”

Challenges With Time-Based Pricing

Time-based pricing is the most common way professional service firms charge for their services.  A case can be made for this method of pricing but that is not my purpose in this post.  What I would like to share are my thoughts about are some of the challenges I see with this method of pricing and how it has negatively impacted firms more than their clients. Continue reading “Challenges With Time-Based Pricing”