Description – On this special podcast-only edition of the Thrivetime Show we are answering a question from a Thrive client with Clay Clark and Dr Z about how to price your product or services.
Question from Thriver:
Hi, I’m a current coaching client and I have a question for Clay and Z. In my industry, many consultants advise accountants to use value pricing for certain services that go beyond the traditional compliance work of tax returns, bookkeeping, etc..
For instance, cash flow forecasting or tax planning for a client may have a potential value to a client of tens of thousands to hundreds of thousands of dollars. From an ethical perspective, what is your opinion on charging more for a service based on the value you bring that client versus having a set fee for every client?
Also, I’ve heard you and others talk about charging a fair price and recommend getting at least a 30% profit margin.
In your opinion is there a point where a profit margin could be too high?
I know some accountants that charge double, triple, and more what the majority of the market would charge and operate at a 50%-70%+ profit margin because they are bringing the value others are not and have clients willing to pay it.
ACTION STEP – mystery shop the competition to the penny and then decide what niche you want to go after them.