One of the hot topics in today’s accounting world is the concept of value pricing.
If you look at Kahuna’s pricing packages, we charge monthly for our services. Our clients pay a monthly subscription that is always the same whether they need several hours of support or if they never call us.
The typical model for accountants as well as lawyers is to charge by the hour. When you call, you go on the clock, and then you get a bill based on the amount of work done.
Here’s why we like value pricing:
1. Keeps the window of communication open
The whole idea of hiring a bookkeeper is to have support. It’s to have help on something you aren’t good at yourself and isn’t part of the core of your business.
So you hire someone else to help you.
Sometimes you just need to talk and ask questions to make sure everything is ok. Sometimes you have simple questions just to clarify what certain things mean.
When you have a fixed monthly cost, you don’t have to fear asking those questions. You don’t hesitate to ask, which keeps communication open and keeps you more in touch.
It also makes it easier for our accounting team, because you get the answers you need, when you need them, and hopefully avoid a costly mistake.
2. No surprises
There’s something freeing about knowing exactly what your expense will be every month.
As a client, you can be proactive and plan ahead, because you know what the expense is. It’s never fun to get a surprise bill for something you had forgotten about nearly a month ago.
This is a dramatic oversimplification of value pricing, but these two features alone have made things much improved for our team and our clients.
We want those we serve to never hesitate about asking a question and by implementing the value-based pricing, we’ve been able to improve the trust and communication.
What about you? What are the pros and cons you see with value-based pricing?