Pricing according to time-spent can have some very negative implications on your business, according to industry thought leader and accounting practice consultant Steve McIntyre-Smith. It sets the wrong tone. Your clients may be reluctant to call or to rely on you, fearful of the financial ramifications of talking to you, their trusted business advisor. The results of not consulting with your accountant or bookkeeper can be devastating, resulting in hours of work for you to fix the books, or missing out on a potentially fruitful opportunity.
Value billing means charging your clients based on the value of the service provided, rather than how long you spent doing it. McIntyre-Smith, one of the top consultants to the accounting profession, will tell you that the best way to start establishing value billing is to establish the value that you bring. Identify with your clients their most pressing needs. Choose one problem and solve it, then move on to the next one. By establishing goals and measuring progress, you make the strongest case for value billing, which will help you going forward.
The end game of value billing is becoming a trusted advisor. It isn’t about your bottom line, though McIntyre-Smith explains that value pricing will also help make you to more money. Through establishing your value, and billing accordingly, you will make yourself indispensable. And, profits will follow.
To learn more about how to value bill, please watch this video: