How to Value Price Professional Servicescpaacademy.s3.amazonaws.com/PPT/valueprice.pdfNot an...

How to Value Price

Professional Services

WWW.90DAYAC.COM

Not an Accountant, Since May 1994, 100,000+ in seminars in 6 countries,

20,000+ on webinars, 5,000 firms coached, author, products in 38 countries. Also

future Astronaut & aspiring ProGolfer!

WWW.90DAYAC.COM

Chartered Accountant, 10 years in firm, Coaching

firms since 1996, highly acclaimed Books /

Manuals and software written. Opera singer and

Cricket umpire!

WWW.PROACTIVEACCOUNTANTS.NET

STRATEGY

WWW.90DAYAC.COM

WWW.90DAYAC.COM

Polling Question

Q. What’s the hardest part about pricing?

1. Articulating Value to the client

2. Having the courage to price

3. Getting to the right price

4. Convincing the client of the value

5. Other – in the question area please.

WWW.90DAYAC.COM

1

A C

2 3 B

Value Belief

Value Perception

Value Contribution

The ideal price

WWW.90DAYAC.COM

Average Hourly Rate / Net firm billing rate

Revenue

billed

Total

Client

hours

charged

NET FIRM

BILLING

RATE /

Average

hourly

rate

$1,650,000

Partners = 2,200

Accountants = 7,800

Total = 10,000

$165

WWW.90DAYAC.COM

Polling Question

Q. What is your current average hourly rate / net firm billing rate for client work?

1. <$100 per hour

2. $101 - $150

3. $151 – $200

4. $201 – $300

5. $300 plus

WWW.90DAYAC.COM

1

A C

2 3 B

Value Belief

Value Perception

Value Contribution

The ideal price


Limiting pricing beliefs

“Our charge rates are in line with

others”

“I’m too busy, I’ll just charge by

the hour”

“It’ll probably take X hours so we’ll charge Y”

“I can get it done really fast”

“There’s too much time on the clock –

we better write some off”

“I’m afraid of what the client

will think”

“What if they say no to me”

“My clients will never pay that

much”


Your new belief system

“I really value what I know. I articulate my

value eloquently. I sell my intellect and

information based on my value contribution rather than my time”

WWW.90DAYAC.COM

WWW.90DAYAC.COM

1

A C

2 3 B

Value Belief

Value Perception

Value Contribution

The ideal price


Where’s the value?


Polling Question

Q. How would your clients value (what is does for them) compliance?

1. No value – offers very little

2. Limited value

3. Good value

4. Exceptional value


2

Value meter


profit


Great

Qu

esti

on

s

DQ

BQ MQ

PQ

MMQ

VQ CQ

TQ

Background

Decision Making

Consequence

Timing

Motivation

Problem

Measurement

Value

My state of mind Sensational meeting, positive, listening, understanding,

Client name / business type

Why here, set the scene Always wanted to help, working on our business, Capacity

Who are the buyers? – DQ’s

Situation – background – BQ’s Revenue $

Profit $

Debt $

Cash assets $

Age

Kids + ages

Business progress

Goals when started business:

Objectives – motivation – Fab 5 (growth, profit, cashflow, asset protection, succession – we’re good at it and we love doing it) – MQ’s

3 – 5 years out

Earnings goal in retire $

Retirement age

Lifestyle goals

Time / hobbies

Size of problem $M $

Objectives – problems in the way – PQ’s

Overdraft / Cash $

Time issues

People issues

Measures – how will you know if achieved? MMQ’s

Value – assuming achieved what would that mean to you and your family? - VQ’s

Timing – assuming paid for out of new cashflow – CQ’s & TQ’s

Consequences of not doing

Getting started – cyclical issues?

Options Go away and think about it – send proposal

BAMFAM Proposal, read, meet questions, start date


How much would you charge?


1

A C

2 3 B

Value Belief

Value Perception

Value Contribution

The ideal price


Inputs Outputs or

Analysis

Advice

Budgets

Tax planning

EOY statements

Meetings

Valuations

Consulting

Structuring

Time.

Profit

Growth

Cashflow

Security

Wealth

Retirement

Success

Peace of Mind

Lifestyle

Hope.


4 stages of workflow

1. Selling

2. Setup

3. Doing

4. Selling


18 step workflow process

1. Schedule the work in advance – using calendar system

2. Meet with client to scope, sell the value of the job, set due date

3. Value price the job, communicate in writing (scope & price) to client

4. Client signs off on scope / price and pays deposit or full amount

5. Send checklist and gather raw materials

6. Check everything has been received

7. Contact the client for any missing information

8. Log the job onto your electronic and visual workflow system

9. Do a draft internal team budget – in hours

10.Set up the electronic workpapers – basic data entry

11.Challenge the hours budget (drive time down), lock in max time

12.Allocate & explain the job to the person doing the work

13.Do the job, PANalytics data input & find Awesome 8 opportunities

14.Communicate any technical queries to client & then finish job

15.Review the job, PANalytics & understand Awesome 8 opportunities

16.Print / Collate / Bind / final Invoice / File

17.Meet client – present with PANalytics, new ideas and sell next job

18.Ask for a referral at least one per year - and follow up!

Client Service Coordinator (CSC)

Partner or Client Manager


Client Service Coordinator







Client Manager / Accountant & CSC

Client Manager

Accountant(s)

Client Manager and Accountant

Client Manager and Accountant




Steps in process Who manages or does

Selling

Setup

Doing

Selling


Polling Question

Q. How much new profit would you make if you value priced services?

1. <$50k per annum

2. $50k - $250k pa

3. $250k - $500k pa

4. $500k - $1M pa

5. $1M plus pa


The obvious

question


How do I

implement these

ideas in my own

firm?


You can do it slow


Trial & Error


Fast


3 Objectives

1. Reduce turnaround time dramatically

2. Reduce WIP days dramatically

3. Reduce receivables dramatically.

90 Day Implementation program - Workflow


90 Day Implementation program - Workflow

Starts November 1 & ends January 31

Guided coaching program

Measure results before, during and after

4 x webinars & 5 phases

Online chat forum with 2,000+ Accountants

Weekly workout sessions

Access to all PAN online resources

Online learning centre

New tools and templates for workflow


Nailing workflow once and for all - in 90 days!

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

90 Day Accountants Challenge




Team on board

Get organized

Welcome

webinar

Theme office

Set rewards





Team on board

Numbers and targets

Get organized

Set your goals

Welcome

webinar

Theme office

Set rewards

Find the

numbers

Complete survey

Set targets





Team on board

Numbers and targets


Get organized

Set your goals

Sort out workflow

Welcome

webinar

Theme office

Set rewards

Find the

numbers

Complete survey

Set targets

Schedule work

Price upfront

Find

opportunities





Team on board

Numbers and targets


Reduce days in WIP

Get organized

Set your goals

Sort out workflow

Delight clients

Welcome

webinar

Theme office

Set rewards

Find the

numbers

Complete survey

Set targets

Schedule work

Price upfront

Find

opportunities

WIP clean out

letter

Self imposed

deadlines

Whiteboards





Team on board

Numbers and targets


Reduce days in WIP

Reduce days in

receivables

Get organized

Set your goals

Sort out workflow

Delight clients

Collect cash

Welcome

webinar

Theme office

Set rewards

Find the

numbers

Complete survey

Set targets

Schedule work

Price upfront

Find

opportunities

WIP clean out

letter

Self imposed

deadlines

Whiteboards

Get tough

New payment

options

System and

champion



Expected results

Turnaround time reduction improves customer service + new referrals

Work In Progress reduction increases revenue and leads to growth opportunities

Receivables reduction increases cash availability and lifestyle improvement.


Problem or Opportunity ProClient system to implement

Write downs / Realization %

Solutions to gaining workflow control, free up time and add value to your clients

Eliminating write downs – learning system

How to tell clients of new procedure WIP clean out process - template

How to introduce change to the team 18 Step workflow – DVD, Checklist, Workbook

Who is the right person(s) (CSC) to hire? CSC position description - template

We are too inefficient now Efficiency – training program

Turnaround time on jobs takes too long 10 day turnaround – learning system

What if I get the price wrong? Pricing Power – how to price system

Too much capacity after efficiency changes Marketing Advantage – Training program

The team don’t know how to find opportunities in each job

Finding Opportunities – learning program

How to deliver value added services The Ultimate Guide to Delivering Value Added Services – learning system and manual


Targets results for 90 Day challenge

Industry average

(2012 ABR)

Challenge target

Turnaround time

WIP Days

Receivable Days

30 – 60 days <10 days

28 <10 Days

48 <30 days


by 5pm Thursday October 31


285 services

300 firms

Median prices “by Accountants for Accountants”


Bonus # 1 – Menu of Services & Price List – valued @ $990

Bonus # 2 – Pricing Power DVD program – valued @ $1,650

2 bonuses worth $2,640 – 5pm tomorrow



Learning sales skills

Solutions to Sales Success

Sales Success – training program

Knowing what to say in front of a client Scripting; mock client interview video

How to articulate value Value Based Fees – training program


The team don’t know how to find opportunities in each job Finding Opportunities – learning program

What services to sell and market Menu of services & price list

Which questions to ask in order Sales interview sheet - template

Finding the ‘numbers upside’ in each sale PANalytics growth equation

Writing proposals Implementation plan template pack


www.90dayac.com Code: VALUE

$1397 or $499 per month

for 3 months


Polling Question

Q. Will you be taking part in our 90 Day Workflow Challenge?

1. No - we can do it on our own

2. Yes – we’re in & excited!

3. Yes - but we need more details


www.90dayac.com – Code: VALUE

www.proactiveaccountants.net

[email protected]

[email protected]

1-855-437-1379

mailto:[email protected]



Learning sales skills

Solutions to Sales Success

Sales Success – training program

Knowing what to say in front of a client Scripting; mock client interview video

How to articulate value Value Based Fees – training program


The team don’t know how to find opportunities in each job Finding Opportunities – learning program

What services to sell and market Menu of services & price list

Which questions to ask in order Sales interview sheet - template

Finding the ‘numbers upside’ in each sale PANalytics growth equation

Writing proposals Implementation plan template pack


www.90dayac.com Code: VALUE

$1397 or $499 per month

for 3 months

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