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Potential Client Process for Value Pricing

February 17, 2022 TaxPlanIQ Support team

Now that you’ve seen the benefits and transformative potential that implementing value pricing can have for your firm, it’s time to take the first steps. 

This article will give you an overview of how you can go from the initial discovery questions to presenting a proposal that will allow your client to see the value of working with you instantly.  

It's All About Asking Questions 

One of the most critical aspects of implementing value pricing is that proposals must be custom-made for each client. 

Presenting a cookie-cutter proposal to your clients can be a significant risk for both of you. It can be risky for you because you can undercharge and have a similar problem as with your previous pricing structure. And it will make it difficult for your client to understand the value of what you are offering.

The first step to creating a custom quote is by understanding their situation better. So before you go diving into their previous tax returns and other documents, you need to talk to them. 

Here are some excellent starter questions that can help you uncover some initial tax planning opportunities:

  • Who did you support over 50% during the last year? 
  • Are you on a high-deductible insurance plan? 
  • Do you want to max out your retirement contributions? 
  • If you had any rental, far, or self-employment income, did you use your vehicle or home office to potentially deduct those expenses? 
  • How much did you donate in cash versus non-cash?

Start With Their Previous Tax Return 

Now that you have a much better idea of how your client works and of potential savings opportunities, it's time to go through their previous year's tax return. 

Their previous year’s tax return will help you be more specific on what strategies you can implement and, most importantly, know what tax savings they are already taking advantage of and to what extent. 

Itemize All the Tax-Saving Opportunities They Have

Listing out all the opportunities that you’ve found is the next step. Because once you’ve done this, you can start calculating the ROI. And ROI is the language that your client understands. 

To do this, you can use a software tool or excel, but in my opinion, the TaxPlanIQ software will help you go through this part of the process much faster. 

Once you’ve determined how much you can save them it's time to look at your fees so you can come up with an actual ROI figure. 

This is the stage of the process where you decide how much you want to charge them. As mentioned earlier, there are no set rules of how much you can charge them. The only rule you need to follow is that it needs to make financial sense for them to pay you more. 

The rule of thumb that I recommend is to make sure that you adjust your fees so that they can see a 200%-300% ROI minimum. At this point, it almost becomes a no-brainer for them to start working with you. 

Don't Overtalk or Over Explain

For the most part, your clients are not tax professionals like you are. And as much as you might feel like you need to explain in great detail every aspect of the quote, I typically advise against this. 

One of the best techniques that both I and the accountants I coach use is to stop talking. Just say nothing once you’ve presented the proposal. 

The reasoning behind this is that the ROI and the figures should explain themselves. Said differently, if your client understands the ROI and trusts you, it will be very easy for them to justify paying your fees. Especially if they can see it across multiple years. 

Set Realistic, Reachable Goals

Now that you’ve got a better understanding of how you can present value pricing to your clients, it's time to set goals. 

Everyone knows goals are important, but they are often left as an afterthought. The idea for having clear goals is that you can use them as a guiding principle to set your fees and decide whether or not you are a good fit for a potential client. 

Keep in mind that you are interested in implementing value pricing because you want to earn more while spending less time on low-value activities.  

Organize Your Time to Accomplish More

One of the most overlooked aspects of moving to value pricing and setting new goals is how you are going to reach them. This is where being deliberate with how you invest your time comes in. 

Even though you might want to jump right into value pricing, you have to come to terms with the fact that there are only a certain amount of hours in the day. So making sure that you are efficient with your time will be the last element you need to move your clients to a value pricing structure. 

Ready to Introduce Value Pricing to Your Clients?

If you’re ready to take your business to the next level, you want to check out the courses and masterminds at Certified Concierge Accounting (CCA). 

Topics covered include:

  • Strategies for improving communication and productivity
  • Access to the value pricing blueprint
  • Automating and improving your client onboarding process
  • Much more, including live mastermind sessions available

Interested? Check out all of the courses here.

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