The Holy Grail Of Pricing Bookkeeping Services: True Value Pricing

[@babsoneverything3060]

This make THE most sense of any pricing strategy I've come across. And interestingly, I knew this intuitively, but you put it together for me. Thank you!

[@BoomingBookkeepingBusiness]

Glad you enjoyed it!

[@BRENDAHibbs-k5f]

Hi Bill! I'm in your mentorship program and watching through all the consultation videos I can find. I notice you mentioned, in regard to smaller clients, that you could help them "develop a plan" or "walk them through" to help them reach their goals. I understand doing the day-to-day bookkeeping but am uncertain how I would help a client in this way?

[@BoomingBookkeepingBusiness]

Hi Brenda! That would consist of interpreting the financials with the client in order to help advise them on steps they can take to improve their business. We touch on that in Module 6 of the mentorship program. And, of course, feel free to email us with any questions!

[@garychism2248]

This True Value pricing model is the way for sure!

[@califaith-purpose]

Thank you for your insight and helping me understand ALL three ideas. However, I like the idea “ true value yesss 👌

[@BoomingBookkeepingBusiness]

Glad you enjoyed it, Dee!

[@Hannah.Sanders]

How would you calculate value based pricing for a cleanup?

[@BoomingBookkeepingBusiness]

You'd start by learning what it's costing the client NOT to have clean books. How much more money would they be making if they knew their real numbers and were able to make better decisions? How much extra might they be paying in taxes? How much extra is their CPA charging them to prep the books for taxes?

[@jessicalindsey404]

This convinced clients they need a bookkeeper/ advisor. But that doesn't have to be either me or nothing. They could just find a cheaper bookkeeper/ advisor. How do I appear irreplaceable?

[@BoomingBookkeepingBusiness]

The edge here is in asking all of the questions I ask during a consultation that allow the client and I to uncover the SPECIFIC problems they're having in their business AND exactly how much those problems are costing them. These are questions virtually no other bookkeepers ask. In the event a prospect mentions speaking to other bookkeepers charging less, I'm able to ask them if those bookkeepers asked them any of the questions I did (knowing they didn't). Once the prospect says no, I say that if I were them, I'd be concerned about whether that bookkeeper truly cared about my business since they didn't take the time to really get to know my situation. And I'd question whether that bookkeeper was willing or able to take a PROACTIVE approach in helping me avoid future threats or take advantage of future opportunities. It's like the bend-and-snap...works every time!

[@Dylanhobrecht]

Thank you!

[@PD-iu9bn]

The only caveat with this system is that you need to be able to deliver on the increase in income for the client. If you sell yourself as able to help them increase revenue by x amount and it doesn’t happen they’ll probably not keep you on. I’ve worked in a family owned medium sized small business and in my experience logistical challenges are only part of what’s holding a business back. Cultural issues are often a major contributing factor and are much more difficult to correct as an outside advisor.

[@BoomingBookkeepingBusiness]

You're only on the hook to the extent that your advice is being implemented. If a recommendation is made, but not implemented for whatever reason, that's on the client. Beyond that, it goes without saying that we need to be able to deliver on our promises.

[@SoCalBrian]

Rewatching the live because I had to end it early in the morning.

[@valuegiven]

Hey Bill, watching the video again just to keep it fresh in my mind. After we ask the questions and we get down to that value that they’re missing out on by not hiring us, do we share with them that we charge 20% of that value or do we just keep that on the down low and go through the Calculator questions with them and then just compare and contrast the workload with the value price that we established?

[@BoomingBookkeepingBusiness]

We don't share our methodology for developing our fees with the client. You can simply say that it's based on the quantity and complexity of the work to be done to help them reach the goals we've discussed.

[@SamaraSmith-rq3pk]

How can i get the Booming Bookkeeping Calculator?

[@BoomingBookkeepingBusiness]

It's available to those in my mentorship program.

[@cesarherrera3284]

Great video! A lot of value

[@BoomingBookkeepingBusiness]

Glad you enjoyed it!

[@jasondelacruz6522]

What are your thoughts on positioning yourself as a partner with those smaller clients and having a monthly fee as a percentage of their revenue? I figure your fee can grow as their revenue grows.

[@BoomingBookkeepingBusiness]

As long as your lead generation is dialed-in, you'll never need to work with small clients and hope they grow. There are so many businesses doing substantial revenue that are willing to pay premium fees for the value you can create. I prefer to focus on those!

[@cathymcmillan549]

I’m new to watching your videos. I’ve heard the terms setup and cleanup? Will you please give an example of these? And, with a new client are these in addition to the monthly fee going forward? Thanks so much.

[@BoomingBookkeepingBusiness]

Hi Cathy! Setups are simply when a client begins using a new accounting platform. Either they weren't using anything previously, or they were using a different platform. Cleanups are when the client had bookkeeping done, but it wasn't being done properly and needs to be "cleaned up." Both of those are typically separate engagements from the ongoing monthly work.

[@cathymcmillan549]

Thank you for your clarification response. I was not familiar with the terms. Boy, have I been doing it wrong! I’ve had two nightmare cleanups!

[@BoomingBookkeepingBusiness]

@@cathymcmillan549 Glad I could help! We've got comprehensive cleanup training in my mentorship program in case you're interested!

[@MichelleValdez-gm4ye]

If you needed to ask then you need to learn accounting.

[@cheryllericaolivares2322]

what about catch up for 4yrs starting 2019-2022 with 30 transactions a month?

[@BoomingBookkeepingBusiness]

That's not a lot of info to go by but you could probably knock that out in a day or so and charge somewhere in the $3k to $4k range.