Time to Make the Switch
You have heard the truth about value pricing. It's a better way to do business with your customer. The customer is happier because they know the price before the work begins. You're happier because you earn a better profit than you would billing by the hour.
If it is that straight forward, what is stopping you from making the switch?
The short answer is because you are not sure how. If only there was a process, a recipe you could follow. Of course, changing from hourly billing to value pricing is not as simple as cooking. However, there are certain steps that you can follow to make it easier.
When should you switch existing customers to value pricing?
At a natural transition point. In accounting and bookkeeping, this is the start of a new year. Traditionally, you enter into a new agreement for monthly/quarterly services in January. It is an opportune time to switch from hourly billing to value pricing.
How do you offer services to the same customer in a new way?
By giving them choices. You encounter it every time you go through a drive-through. Would you like it small, medium or large? Tall, Grande or Venti? The power of choice changes the conversation from “Will I work with you?” to “How will I work with you?”
Do you have to switch all your customers at the same time?
No, I do not recommend it. You will have to operate your business in two different ways at the same time. Hourly billing for some customers, value pricing for others. This way you can gain some experience without risking your entire business.
What else should you do to have the best chance of success?
Do not start this journey alone. Ideally, you want two types of people with you.
- You want someone who has been down this road before leading you. There will be challenges you cannot anticipate along the way. If you can lean on the wisdom of a Sherpa, a mountain guide, you can cross the new terrain successfully.
- You want someone who is going the same direction at the same time. Companionship will make the journey easier and more fun. When you can ask the person beside you, “What did you do in this situation?”, you will find encouragement.
What if you could have all three–the steps, guide and peers–at the same time? Well, you can.
The Value Pricing “Switch”
A four-week mentoring program to help you create a new annual service agreement for your existing customers for 2019.
Each week you will have three sessions:
- Learning session on the steps to help you make the switch
- Practice session where I walk you through a real case study
- Coaching session where you can ask your questions live
In addition, you will have access to:
- A recording of each session for replay and review
- A 24×7 chat room to ask questions whenever you need
- Worksheets to help you make decisions along the way
The topics we will cover include:
- Week 1 – Preparing the customer for the switch
- Week 2 – Determining the value to the customer
- Week 3 – Creating the options and setting the price
- Week 4 – Presenting the proposal to the customer
The sessions will be November 12-16 (before Thanksgiving) and November 26-December 14 (after Thanksgiving). The sessions will be on weekdays:
- Monday Afternoon – Teaching session to learn the core concepts for the week
- Wednesday Morning – Training session to walk through a real case study
- Thursday Morning – Coaching session to ask your questions and discuss with your peers
The price for Value Pricing Switch is $500, with a money-back guarantee.
Early Registration Bonus
- The first 10 people to register for VPS will receive two private coaching sessions with me as a bonus.
- The next 10 people to register (spots 11-20) will receive one private coaching session with me as a bonus.
FAQ (Frequently Asked Questions)
What is VPS?
VPS stands for Value Pricing Switch. It is my term for making the transition from hourly billing to value pricing in your professional practice.
Who should enroll in VPS?
There are two types of professionals who will benefit from VPS. One, an accountant or bookkeeper who is ready to make the switch to value pricing for the first time. Two, an accountant or bookkeeper who has tried to make the switch to value pricing with marginal success.
Why should I consider value pricing?
Because every time you bill by the hour, you are placing an artificial limit on your income. There are only so many hours you can bill, and you can only raise your rate so high. Your business should be more profitable.
Who are you?
My name is Kirk Bowman. I am the founder of Art of Value, a pricing consultancy, and a Practicing Fellow at the VeraSage Institute. VeraSage is the leading think tank for pricing knowledge for accounting professionals.
On the Art of Value Show, my podcast, I have interviewed over 100 professionals about implementing value pricing. My guests have included Ron Baker, Ed Kless, Joe Woodard, Blair Enns and several VeraSage Fellows. I have taught value pricing to thousands of professionals including at the annual QuickBooks Connect and Scaling New Heights conferences.
Why are you teaching VPS?
In 2009, I made the switch to value pricing in my software practice after 15 years of billing by the hour. The first year our revenue grew by 56% and the second year by 79%. I guess you could say I have been there, done that and got the t-shirt.
Why are you qualified to teach accountants and bookkeepers?
I have been a customer of accounting and bookkeeping services for over 20 years. In my software firm, I have helped several companies integrate custom software with accounting packages like QuickBooks. And, I have a college degree in business, which included several accounting courses.
Do I have to “trash my timesheets” to make the switch?
If you have heard me speak, you know I will encourage you move away from tracking time. However, the reality is it takes patience. You will have to operate in two business models, hourly billing and value pricing, for a few months before you make a complete switch.
Why are you offering VPS during the holiday months?
For two reasons. One, it is the most convenient time for accountants and bookkeepers to switch their existing customers to value pricing. Two, it is between the two busiest times of the year for accountants and bookkeepers, October 15th and April 15th.
Why did you not start VPS the first week in November?
Because I am teaching multiple sessions on value pricing November 5-7 at the 2018 QuickBooks Connect Conference in San Jose, CA. (If you will be at QBC, please drop by and say “Hi!”)
What if I cannot attend one or more of the live sessions?
Every session will be recorded. You can watch each session as many times as you want. The recordings will be online for at least 12 months.
What if I need help at night or on the weekend?
You will have access to a 24×7 chat room during the camp. Your fellow “switchers” and I will hang out to share questions, answers, successes and challenges. Also, you will be able to review the chat history as often as you need.
How will I access the sessions and the chat room?
The sessions will be broadcast using Zoom, an online meeting service with browser, desktop and mobile apps. The chat room will be hosted using Slack, an online chat service with browser, desktop and mobile apps.
Will Hector Garcia be teaching any of the VPS?
Hector and I co-host a weekly Facebook live show called the Art of Advisory. While Hector is not an official instructor for VPS, you never know when he may make a live appearance in a session or the chat room.
What if I still have questions?
Shoot me an email firstname.lastname@example.org.