How to Price and Package Bookkeeping Services with Confidence
Sep 19, 2024
Hey there, rockstar bookkeeper!
Ready to make more money while working fewer hours?
How about increasing client satisfaction at the same time?
If you're tired of the old-school ways of pricing your services and want to start charging what you’re truly worth, you’re in the right place.
This guide will show you how to confidently price and package your bookkeeping services so you can skyrocket your income, impress your clients, and finally feel like the boss you are.
The Old Way Is Broken (And It's Costing You Big Time)
Let’s get real for a second. The billable hour model isn’t just outdated; it’s a ticking time bomb in your business. You might be thinking:
- “But that’s how everyone does it!”
- “It’s just what we’re used to!”
- “That’s my pricing comfort zone!”
All of these may be true. But let me tell you why this approach is keeping you stuck, stressed, and seriously underpaid.
It’s Capping Your Income Potential
There are only so many hours in a day. And when you’re charging by the hour, you’re putting a hard cap on your income. The faster you work, the less you earn.
Twisted logic, right? It’s like being punished for being good at your job.
It’s Creating Tension with Your Clients
Ever send out an invoice and feel that little twinge of anxiety?
You know the one—where you’re bracing for your client to ask, “Did it really take that long?”
You imagine the client reviewing the invoice line by line, trying to perform calculations in their head regarding the amount and quality of your work for that period.
Not all clients are this way, but it’s extremely common. You’re stuck trying to work fast while they wonder if you’re working too slowly. It’s hard to produce great work under those circumstances and it can make it difficult to maintain a positive relationship.
Awkward. Inefficient. And a recipe for friction.
It’s Turning Your Expertise into a Commodity
You’re not just a number cruncher: you’re a business builder, financial fixer, and value creation champion!
But when you bill by the hour, you’re basically saying that your time—your precious, valuable time—is your product.
But your time isn’t a product. The results that come to your clients after you’ve cleaned and organized their books (better and faster decisions, more time to focus on their business, less stress, etc.) are your true value proposition.
Charging hourly often leads to a race to the bottom, there will always be someone who is in a situation where they can charge less by the hour. And that’s no place for someone with your skills and expertise.
It’s Killing Your Profitability
The better you get at what you do, the less you earn!
Seems like a pretty high price to pay for your competence and efficiency.
It’s backward that the faster you are at getting work done, the less money you’re going to be making. Plus, every time a project goes a little off the rails (hello, scope creep!), you’re the one eating the cost.
You’re working faster than ever, your profit margins shrink, your stress levels rise, and suddenly, you’re wondering why you ever went into business in the first place.
It’s Stressing You Out
Keeping track of every six-minute increment of your day? Exhausting.
Feeling guilty for taking a break or getting a creative idea and stepping away for a bit to execute it? Totally unfair.
Intensely granular time tracking adds an extra mental load that you don’t need.
Have you ever accidentally left a timer running, and forgotten about it, only to have a mini heart attack when you logged in the next day and realized it was running for 18 hours, and you have no idea how much time you spent on that end-of-day project?
I’m feeling anxious just thinking about those days.
The billable hour model isn’t just bad for your bank account—it’s bad for your mental health.
But what if there was a better way?
Of course, I’m going to tell you all about it, that’s what I do!
Introducing: The Value Pricing Revolution
Say hello to the Value Pricing Revolution!
My Simple Pricing for Profits System isn’t just about how you price, it’s a system to transform your entire business model.
Here’s what people gain from following my proven method:
1. Land More Clients
Learn how to have “value conversations” with your clients that make them eager to work with you.
Instead of being just another service provider, you’re positioned as a trusted advisor. You’ll stand out from the crowd by focusing on the outcomes your clients care about, not the hours you log.
2. Command Higher Prices
Get ready to price based on the incredible value you bring to the table, not your time logged.
With tiered pricing strategies, your clients can choose their level of investment, and you can confidently raise your rates without the fear of losing clients. Yeah, it’s a great feeling!
3. Reduce Friction and Stress
No more tracking time or sending detailed invoices that make your clients’ eyes glaze over. By setting clear expectations upfront, you decrease scope creep and disputes.
Suddenly, you’re holistically aligning your interests with your clients’ interests. When they win, you win. Simple as that.
4. Boost Your Profitability
Hidden gems are lurking in your services—value that your clients will gladly pay for once they see it. Learn how to package your offerings for maximum profit, increasing your revenue without adding a single extra hour to your workweek.
5. Enhance Client Relationships
When you shift the conversation from cost to investment, your clients start to see you as a partner in their success. Long-term partnerships based on value, not transactions, are the foundation of a thriving business. Deliver a premium experience, and watch your clients rave about you. Welcome to more client referrals, the best form of business development!
This isn’t just theory—these are battle-tested strategies that have transformed thousands of businesses.
Including mine.
When I Switched to Value Pricing…
Some pretty incredible things started happening:
- Client satisfaction scores shot up
- I cut my working hours while increasing revenue
- My average project value increased
All of these brought more joy to my life, but to me, the best part was seeing my clients were happier than ever. They were focused on the value they were receiving, not the time I was spending.
This is the power of value pricing, and I’m going to show you exactly how to make it work in your business.
Ready to break free from the billable hour trap and start pricing for profit?
Two Simple Value Pricing Strategies That I Use and Teach
Let’s talk about two value pricing strategies that have taken my business (and sanity) to the next level.
You’ve probably seen them out in the wild, but I’m going to break them down in detail for you to see how they can positively impact your business.
Menu Pricing
Menu pricing is like offering your clients a delicious, Michelin-star menu of services. They can pick and choose, creating their own perfect meal. Your clients have the flexibility to select specific services à la carte or combine them into packages that suit their unique needs. Each service or package has a set price, so there are no surprises.
This approach gives your clients more control, allowing them to tailor the services to their preferences. It’s perfect for firms that offer a wide range of services, as it caters to clients who want options.
3-Tier Pricing
The 3-Tier method offers three predefined levels of service—basic, standard, and premium—each with its own bundle of goodies. Clients choose from one of three fixed packages, each representing a different level of service and price. It’s a clear, structured approach with no option to mix and match outside the bundles.
The 3-Tier method simplifies decision-making by presenting clients with three clear choices. It’s easy for them to understand, and it’s easy for you to manage.
Key Differences
Flexibility: Menu pricing offers more flexibility, letting clients mix and match services. The 3-Tier method is more structured, with three distinct packages.
Structure: Menu pricing can include an unlimited number of choices, while the 3-Tier method focuses on three well-defined, structured packages.
Both methods encourage value-based pricing, but they serve different client preferences and business models. The key is to choose the one that aligns best with your business and your clients’ needs.
Need Help with Pricing and Packaging Bookkeeping Services?
So, there you have it—a roadmap to pricing your services and turning your bookkeeping business into a profit powerhouse.
While it sounds simple, for many bookkeepers implementing this can be challenging. Not because you aren’t able to do it, but because sometimes we need that boost of confidence and support. We’re only human, after all, and we’ve been conditioned for many years to do things a certain way. It’s hard to break out of our own expectations.
Don’t worry if you still have questions, or need a little extra help. This guide is just the beginning.
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