It can be difficult to price your services as an accountant, and hard to know what set price to stick with when you first start your business. Maybe you priced your services low to start with and now you’ve noticed you’re not charging enough. Take a look at our top tips for pricing your services so that you can be sure you’re getting what you deserve.
Review your fees
Reviewing your fees is the first step to assess if you’re charging customers enough. With the cost of living on the rise, now is a good time to look at the profit that you’re making and start implementing a change of price if you’re noticing a decline in profit. If you have come to realise that you need to charge more, you could be left wondering how much should you be charging? How do you tell your customers? Is it fair to increase the price? Of course! Customers are using your service for a reason- it’s their choice to work with you so you shouldn’t feel guilty about having to increase your price. Read more to find out more about pricing and making the talk with customers easier than you thought.
Do some research
There are an estimated 43,250 accountancy firms in the UK, meaning that there are plenty of choices for you to get a rough idea of pricing. Take a look into how much local practices are charging, and compare if you’re charging roughly the same, or too little.
No two clients will be the same, so you might want to do some research into different pricing plan options- will you have set prices for each service, or will you design them catered to each customer’s needs?
Recognising it’s time to raise your rates
There are many reasons that you might decide to increase your prices, and it’s important to recognise when you should do so. If there is an increase in your business expenses, such as rent increase or electricity, it might be time to raise those prices. With the cost of electricity increasing for everyone, it might be time to look into solutions on how to reduce your business electricity. Another reason you might want to increase your cost is if you have worked towards improving a particular skill. If you’ve gained a qualification in a specific area, it might be time to reflect that into your prices. This also applies if you’re offering a more bespoke service for clients. If you’ve just decided that it’s time for an increase in profit, that’s also fine!
Choose a method
No two clients will be the same, so you might want to do some research into different pricing plan options- will you have set prices for each service, or will you design them catered to each customer’s needs? Will you be charging depending on the service that you offer, using a competitive method, or pricing depending on the time that you use- that’s something that you can have a think about and assess what will work best for you. You might even want to offer a discount for long-term customers!
Understanding your client
Your clients will be the ones paying your fee, so it’s important to see it from their perspective. You’ll need to define who your target audience is, how much income they will roughly be receiving, and how much they will be able to comfortably afford to pay you. Think about the value that you can offer them- if you have specialised skills in a certain area, you’ll probably be able to charge more If this is rare to come by.
The size of your practice
The size of your accountancy practice could make a difference in how you price things- if you have more than one member of staff, you might want to consider increasing those prices. A cheaper alternative to growing your company whilst also keeping costs at bay is to co-source your bookkeeping and payroll services. This way, you can flexibly decide what days you need staff and have no worries about issues such as sick cover or equipment costs. This allows you to have more time for your customers and charge them a more reasonable rate.
Learn from error
We’re all in a learning process, so it’s fine to change your mind. If you started with your prices being too high or too low, you might be concerned about changing them. Remember that this is your business, and it’s fine to try a few methods until one works for you, just make sure you don’t change too often so that your clients know how much they will be paying you, giving them reliable service.
Informing your clients of a change in price
The next step after raising your prices is to inform your clients about the change. This can be daunting and worrying for business owners- but remember your worth. An accountant brings value to business owners, in fact, 91% of small business owners recognise accountants as an important part of their business. You’re more than entitled to raise your prices if you feel that the time is right. You can also include in contract terms that prices can fluctuate, making clients aware before they start using your services that there is the chance that rates can change. Don’t forget to focus on the positives- write your clients a letter or email including all the points that you’ve achieved while working together. This will not only show your clients what great work you’re doing but also help you realise all the hard work that you’ve put in. Always follow your clients up with a message or call once you’ve broken the news that your prices are changing- this will give them the opportunity to air any concerns and make them feel more at ease with their questions being answered. It will also make them feel more at ease and show them how much care you put into your work!
