14 October 2022
Topic: Value-Based Pricing
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In this blog, we are breaking down how to create your ideal client. If you’re struggling with finding high-quality clients, this blog will benefit you!
What is Value-Based Pricing?
Value-based pricing is one of the many pricing models businesses use to charge clients for their services.
There are various pricing models like hourly, fixed fee, competitive pricing, penetration pricing, etc.
As the name suggests, value-based pricing is a pricing model that focuses on how much value you offer.
The more value you can offer your clients, the higher you can charge for your services or product.
How Can You Use Value-Based Pricing?
When you use the value-based pricing model, you want to shift your mindset from hourly focus to outcome focus.
So throw your hourly rate out the window for a second.
Instead of thinking about how much you can charge per hour, consider your impact on people’s lives or businesses.
Ask yourself the following questions:
What amount of money will you save someone who uses your services?
What’s the percentage of success clients have by using your services?
How much money will your clients make by using your services?
How will your service change their lives, and will this change be a short-term or long-term fix?
How much time are you saving them by using your service?
Focus More On Results
Some accountants seem to underestimate their actual value in society.
If you’re an accountant, make no mistake, you have value to offer. Your service is needed no matter the time of day or season!
The solution you offer to clients is so much more than accounting.
Below is a list of ideas for framing your services as more than just “accounting.”
It’s about helping people file taxes with ease.
Saving your clients time and money from having to file taxes incorrectly.
Not having anxiety when they go to their mailbox.
Helping your clients sleep at night knowing you got their back when the IRS comes knocking
Not waking up one morning and having their wages garnished
They will be able to create more magical memories with their family.
Think about how they would feel after being helped by your service. Then, think about how they would feel without your specialized service.
What Are The Benefits Of Using Value-Based Pricing?
It allows you to go from charging little fees and start charging more premium fees that can help your business flourish.
When you value price, you set yourself apart from your competitors.
There is no way your competitors can compare their prices to yours. This is because they haven’t taken the time to find value in their services to justify their pricing.
Your competitors will still use the same rates while you will be charging premium rates because your services now have more apparent value.
Communication Is Key
When speaking with your potential client for the first time, it is crucial that you’re able to communicate the value of your services.
Some clients are analytical, so providing data on how much time or money they will save will help you communicate your value.
On the other hand, other clients are more visual learners, so giving illustrations will help them better understand your service’s value.
When your client can connect to your solution emotionally, that’s when they will be okay with paying the big bucks for your services.
Want To Learn More?
To start reading, click the link below.