Mark Wickersham (UK):
The Value Pricing System https://www.wickersham.co.uk/a/6541/wWVxKzFL
How to properly build scope into your
price so you never make a loss!
One of things you need to be doing to
make sure you don’t make a loss, is to
give people a higher fixed price than
you would have given before.
When you move to value pricing, when
you give a fixed price upfront, you are
giving the client certainty.
You are taking away their risk because they know what the price is.
They didn’t
under old fashioned time based billing.
You now have the risk.
Because you are taking on more risk that the
job may over run, you should charge a higher price.
Some people are worried that if they
use value pricing they might make a
loss on a job.
But the reality is, it’s
so much better than time based billing.
My experience of working with
accountants for the last 20 years is
that we often just write time off.
We see the time sheets, and we use some
commercial judgement, and we decide
that we can’t possibly charge that, so
we write it off.
For that reason, time sheets is not
an accurate way of billing anyway.
Let’s move to value pricing.
Let’s accept the fact that sometimes we will
make super profits, sometimes we might
not.
But we will increase the number of
times we get it right as we improve our
system for properly scoping out the
work first.
Also:
Those links again:
The Value Pricing System
https://www.wickersham.co.uk/a/6541/wWVxKzFL
Effective Pricing for Accountants (book)
https://www.wickersham.co.uk/a/8770/wWVxKzFL
The Power of Price Psychology
https://www.wickersham.co.uk/a/1878/wWVxKzFL
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