Mark Wickersham (UK):
The Value Pricing System
In this post I’m going to in this post I’m going to
explain why you absolutely shouldn’t put prices on your website. To illustrate what I mean, I’d like to
talk about one UK firm of Chartered Accountants who does display its – shockingly low – prices on its website. In fact, one of their case studies even
boasts about how much they can save you: “Their existing accountant charged them £650. We charged £390 – a 40% saving.” With examples like that, is it any
wonder most accountants and bookkeepers are working far too many hours, for far too little money? Or that they’re far too stressed? You get what you pay for.
So, what’s the problem? Well,
generally, whenever firms put their prices on a website, it’s because they want to win more business. And, because they want to win more business, they keep their prices low. But what this
does is create the wrong anchor. I’m sure you’ve heard the phrase: “You get what you pay for in this world.”?
We all know there’s a link between price
and quality and so, when we see something that’s incredibly cheap, we assume – usually quite rightly – that it’s not very good quality. Would you like difficult clients?
Also, we all know that some people just
want the cheapest option. And that often they’re also the people who are most likely to complain, and the most likely to leave as soon as they find someone cheaper. And I promise you, by
displaying its prices and boasting about how cheap it is, this firm is going to attract exactly those people. (More of Mark!) Better pricing = higher profits
If you have a service business, you can
earn much more from this series. Also, Mark runs a programme called
Price Consulting, and he teaches
accountants/bookkeepers how to help their customers with their pricing. Thank you for the positive response to
posts on this topic and the action taken. Please tell your friends!
Those links again:
The Value Pricing System
Effective Pricing for Accountants (book)
The Power of Price Psychology
Monthly Mentoring
The complete guide to menu pricing – NEW!
(video training programme) How to build a successful bookkeeping
business (book) How to build a successful bookkeeping
business (video training programme) Grab them NOW and claim the true income
that you earn!
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