Charging Less to Get New Clients
Sometimes I hear new firm owners say something like…
I’m charging less for a tax return / bookkeeping now because I’m just getting started and want to get clients.
I get it.
I didn’t know what to charge when I first started, so I went with $50/hr (so proud of myself at the time… ::rolls eyes:: now)
I really did want to get clients, so I was happy to be the cheap option
Let me tell you what being “the cheap option” will get you in the long run…
A bunch of clients who are always looking for the cheap option.
Those type of clients find value in paying the least amount they can vs finding value in your expertise, quality of service, and high-level of communication.
When you build a business on being the cheap option, you wake up one day with a firm of clients that will fight you on a 3% price increase and willingness to jump-ship to the next provider that is charging $100 per month less of $100 less per return.
Instead…
What if you built your business intentionally slower, pricing at a market rate (or higher), gaining clients that are hiring you for your expertise and personality.
(Yes, people are hiring you for your personality whether you like it or not. Don’t freak out. This is a good thing. The key is to just act like yourself.)
Or what if…
You offered a 6 - 12 month discount with a clear communication that after the defined time period, the monthly/annual price would revert to your “normal” rate. It might sound like:
“The normal rate for my basic bookkeeping service is $500 per month, but I’d be willing to give you a $100/month discount for the next 6 months to get things started.”
That way, they feel good about “getting a deal” and you don’t have to have that awkward pricing conversation when that discount naturally falls off their monthly recurring bill 6 months later.
Already have a bucket load of low-priced clients that you collected in the beginning?
It’s okay to offer them new pricing tiers when their current contract is up.
It’s also okay to let now-non-ideal clients go.
Talk soon,
Erica