Lower Price, not Under-Priced

There is so much noise in the accounting industry media-space about raising your rates and offering high-priced services. Heck, I’m some of that noise! But there is a time and place for everything.

Last week, I dropped my lowest offered price for a prospective client.

Here’s why:

1. I was responding to learnings from my target market

2. There is economic uncertainty and consumer fear and it impacts how people buy everything

3. I wanted an “easy yes” for this particular prospect and a quick win for me

Here’s what I didn’t do.

I didn’t lower the price of my lowest-price offering. I created a new offering at a lower price. There’s a difference.

Previously, my lowest offer was $597 for “Concierge Bookkeeping”, which includes things like Fathom reporting, unlimited questions answered, 1099 completion, and discount strategy sessions.

My lowest offer for this particular prospect (not listed anywhere on my website) was $400 for “Just Books” which includes, you guessed it…just books, no frills, maybe an ugly QBO P&L at the end of the month.

It was a lower priced service, not an underpriced service.

I know how long this will take me each month. It’s still very profitable on an hourly basis and gets my foot in the door for a potential upgrade later on.

The prospect jumped at it during the discovery call. It was the “easy yes” I was looking for. Ready to sign. Onboarding slot booked. Everyone was happy.

I’m not saying all accountants should drop their rates right now.

I repeat. I’m not saying everyone should lower their rates.

I’m just saying that there is a time and place for everything. We are always reacting to our target market and our own needs. And it’s okay to experiment.

If you find yourself in a space where you think a lower price might get you more bites, the answer may not be lowering the rate on your current offerings, but creating a new, lower-priced offering that’s still profitable for you.

Hope this helps,

Erica