How to Value Price Professional Services

Transcription

1 How to Value Price Professional Services

2 Not an Accountant, Since May 1994, 100,000+ in seminars in 6 countries, 20,000+ on webinars, 5,000 firms coached, author, products in 38 countries. Also future Astronaut & aspiring ProGolfer!

3 Chartered Accountant, 10 years in firm, Coaching firms since 1996, highly acclaimed Books / Manuals and software written. Opera singer and Cricket umpire!

4 STRATEGY

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8 Polling Question Q. What s the hardest part about pricing? 1. Articulating Value to the client 2. Having the courage to price 3. Getting to the right price 4. Convincing the client of the value 5. Other in the question area please.

9 The ideal price Value Belief 1 C Value Perception 3 B A Value Contribution 2

10 Average Hourly Rate / Net firm billing rate NET FIRM BILLING $165 RATE / Average hourly rate Revenue $1,650,000 billed Total Client hours charged Partners = 2,200 Accountants = 7,800 Total = 10,000

11 Polling Question Q. What is your current average hourly rate / net firm billing rate for client work? 1. <$100 per hour 2. $101 - $ $151 $ $201 $ $300 plus

12 The ideal price Value Belief 1 C Value Perception 3 B A Value Contribution 2

13 Limiting pricing beliefs Our charge rates are in line with others I m too busy, I ll just charge by the hour It ll probably take X hours so we ll charge Y My clients will never pay that much I can get it done really fast What if they say no to me I m afraid of what the client will think There s too much time on the clock we better write some off

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15 Your new belief system I really value what I know. I articulate my value eloquently. I sell my intellect and information based on my value contribution rather than my time

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18 The ideal price Value Belief 1 C Value Perception 3 B A Value Contribution 2

19 Where s the value?

20 Polling Question Q. How would your clients value (what is does for them) compliance? 1. No value offers very little 2. Limited value 3. Good value 4. Exceptional value

21 Value meter 2

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23 profit

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25 Great Questions Background Decision Making DQ BQ MQ Motivation PQ MMQ Problem Measurement VQ CQ Value Consequence TQ Timing

26 My state of mind Sensational meeting, positive, listening, understanding, Client name / business type Why here, set the scene Always wanted to help, working on our business, Capacity Who are the buyers? DQ s Situation background BQ s Revenue $ Profit $ Debt $ Cash assets $ Age Kids + ages Business progress Goals when started business: Objectives motivation Fab 5 (growth, profit, cashflow, asset protection, succession we re good at it and we love doing it) MQ s 3 5 years out Earnings goal in retire $ Retirement age Lifestyle goals Time / hobbies Size of problem $M $

27 Objectives problems in the way PQ s Overdraft / Cash $ Time issues People issues Measures how will you know if achieved? MMQ s Value assuming achieved what would that mean to you and your family? - VQ s Timing assuming paid for out of new cashflow CQ s & TQ s Consequences of not doing Getting started cyclical issues? Options Go away and think about it send proposal BAMFAM Proposal, read, meet questions, start date

28 How much would you charge?

29 How much would you charge?

30 How much would you charge?

31 How much would you charge?

32 The ideal price Value Belief 1 C Value Perception 3 B A Value Contribution 2

33 Inputs or Outputs Analysis Advice Budgets Tax planning EOY statements Meetings Valuations Consulting Structuring Time. Profit Growth Cashflow Security Wealth Retirement Success Peace of Mind Lifestyle Hope.

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39 4 stages of workflow 1. Selling 2. Setup 3. Doing 4. Selling

40 18 step workflow process Steps in process 1. Schedule the work in advance using calendar system 2. Meet with client to scope, sell the value of the Selling job, set due date 3. Value price the job, communicate in writing (scope & price) to client 4. Client signs off on scope / price and pays deposit or full amount 5. Send checklist and gather raw materials 6. Check everything has been received 7. Contact the client for any missing information Setup 8. Log the job onto your electronic and visual workflow system 9. Do a draft internal team budget in hours 10.Set up the electronic workpapers basic data entry 11.Challenge the hours budget (drive time down), lock in max time 12.Allocate & explain the job to the person doing the work 13.Do the job, PANalytics data input & find Awesome 8 opportunities 14.Communicate any technical queries to client & Doing then finish job 15.Review the job, PANalytics & understand Awesome 8 opportunities 16.Print / Collate / Bind / final Invoice / File 17.Meet client present with PANalytics, new ideas and sell next job 18.Ask for a referral at least one per year - and follow up! Selling Who manages or does Client Service Coordinator (CSC) Partner or Client Manager Partner or Client Manager Client Service Coordinator Client Service Coordinator Client Service Coordinator Client Service Coordinator Client Service Coordinator Client Service Coordinator Client Service Coordinator Client Manager / Accountant & CSC Client Manager Accountant(s) Client Manager and Accountant Client Manager and Accountant Client Service Coordinator Partner or Client Manager Partner or Client Manager

41 Polling Question Q. How much new profit would you make if you value priced services? 1. <$50k per annum 2. $50k - $250k pa 3. $250k - $500k pa 4. $500k - $1M pa 5. $1M plus pa

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43 The obvious question

44 How do I implement these ideas in my own firm?

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46 You can do it slow

47 Trial & Error

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49 Fast

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55 90 Day Implementation program - Workflow 3 Objectives 1. Reduce turnaround time dramatically 2. Reduce WIP days dramatically 3. Reduce receivables dramatically.

56 90 Day Implementation program - Workflow Starts November 1 & ends January 31 Guided coaching program Measure results before, during and after 4 x webinars & 5 phases Online chat forum with 2,000+ Accountants Weekly workout sessions Access to all PAN online resources Online learning centre New tools and templates for workflow

57 Nailing workflow once and for all - in 90 days! Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 90 Day Accountants Challenge

58 Nailing workflow once and for all - in 90 days! Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Team on board Get organized Welcome webinar Theme office Set rewards 90 Day Accountants Challenge

59 Nailing workflow once and for all - in 90 days! Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Team on board Get organized Numbers and targets Set your goals Welcome webinar Theme office Set rewards Find the numbers Complete survey Set targets 90 Day Accountants Challenge

60 Nailing workflow once and for all - in 90 days! Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Team on board Numbers and targets 18 step workflow process Get organized Set your goals Sort out workflow Welcome webinar Theme office Set rewards Find the numbers Complete survey Set targets Schedule work Price upfront Find opportunities 90 Day Accountants Challenge

61 Nailing workflow once and for all - in 90 days! Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Team on board Get organized Welcome webinar Theme office Set rewards Numbers and targets Set your goals Find the numbers Complete survey Set targets 18 step workflow process Sort out workflow Schedule work Price upfront Find opportunities Reduce days in WIP Delight clients WIP clean out letter Self imposed deadlines Whiteboards 90 Day Accountants Challenge

62 Nailing workflow once and for all - in 90 days! Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Team on board Get organized Welcome webinar Theme office Set rewards Numbers and targets Set your goals Find the numbers Complete survey Set targets 18 step workflow process Sort out workflow Schedule work Price upfront Find opportunities Reduce days in WIP Delight clients WIP clean out letter Self imposed deadlines Whiteboards Reduce days in receivables Collect cash Get tough New payment options System and champion 90 Day Accountants Challenge

63 Expected results Turnaround time reduction improves customer service + new referrals Work In Progress reduction increases revenue and leads to growth opportunities Receivables reduction increases cash availability and lifestyle improvement.

64 Solutions to gaining workflow control, free up time and add value to your clients Problem or Opportunity ProClient system to implement Write downs / Realization % Eliminating write downs learning system How to tell clients of new procedure How to introduce change to the team Who is the right person(s) (CSC) to hire? We are too inefficient now Turnaround time on jobs takes too long What if I get the price wrong? WIP clean out process - template 18 Step workflow DVD, Checklist, Workbook CSC position description - template Efficiency training program 10 day turnaround learning system Pricing Power how to price system Too much capacity after efficiency changes The team don t know how to find opportunities in each job How to deliver value added services Marketing Advantage Training program Finding Opportunities learning program The Ultimate Guide to Delivering Value Added Services learning system and manual

65 Targets results for 90 Day challenge Industry average (2012 ABR) Challenge target Turnaround time WIP Days Receivable Days days <10 days 28 <10 Days 48 <30 days

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67 by 5pm Thursday October 31

68 285 services 300 firms Median prices by Accountants for Accountants

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70 2 bonuses worth $2,640 5pm tomorrow Bonus # 1 Menu of Services & Price List $990 Bonus # 2 Pricing Power DVD program $1,650

71 Solutions to Sales Success Problem or Opportunity Learning sales skills Knowing what to say in front of a client ProClient system to implement Sales Success training program Scripting; mock client interview video How to articulate value What if I get the price wrong? The team don t know how to find opportunities in each job What services to sell and market Value Based Fees training program Code: VALUE Pricing Power how to price system Finding Opportunities learning program Menu of services & price list Which questions to ask in order Finding the numbers upside in each sale Writing proposals How to deliver value added services $1397 Sales interview sheet - template PANalytics growth equation or $499 per month for 3 months Implementation plan template pack The Ultimate Guide to Delivering Value Added Services learning system and manual

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74 Polling Question Q. Will you be taking part in our 90 Day Workflow Challenge? 1. No - we can do it on our own 2. Yes we re in & excited! 3. Yes - but we need more details

75 Code: VALUE

76 Solutions to Sales Success Problem or Opportunity Learning sales skills Knowing what to say in front of a client ProClient system to implement Sales Success training program Scripting; mock client interview video How to articulate value What if I get the price wrong? The team don t know how to find opportunities in each job What services to sell and market Value Based Fees training program Code: VALUE Pricing Power how to price system Finding Opportunities learning program Menu of services & price list Which questions to ask in order Finding the numbers upside in each sale Writing proposals How to deliver value added services $1397 Sales interview sheet - template PANalytics growth equation or $499 per month for 3 months Implementation plan template pack The Ultimate Guide to Delivering Value Added Services learning system and manual