Podcast
Summary
- Improving Profit Leads to More Options
- First Things, First: Increase Prices
- Increase Retention
- Increase the Quantity of Services Your Clients are Buying
Resources
- The Hidden, Simple Growth Lever in Your Firm
- What You Need to Know Before Pricing Accounting Services
- 12 Expert Tips to Create a Thriving Virtual Accounting Firm
Improving Profit Leads to More Options
Today, the founder and CEO of Jetpack Workflow, David Cristello is back with another solo cast to cover how the current job market is affecting firms.
You know about the great resignation and employee turnover and ways to improve it. But it’s essential to look at it from the angle of why it’s happening.
David believes it’s because employment opportunity is sky high and the benchmarks for compensation are going through the roof.
It’s putting pressure on firms to find ways to automate and become more efficient. It’s also forcing firms to figure out how to afford it and still grow.
To help, the rest of the podcast will cover a few ways to help your firm grow profit. While it won’t solve all of your problems caused by resignations, it will allow you to be more flexible when searching for solutions.
First Things, First: Increase Prices
First, you need to do a price benchmark of all of your services.
Take time to do a deep dive into your prices. Ask yourself:
- What kind of value do you bring to the market?
- What are your competitors offering and what value are they bringing at what price point?
Look at the full market survey. You can also survey your clients by running something called a price sensitivity score which covers:
- What price is too much and would cause them to walk away
- The sweet spot price
- What price is so cheap they’ll questions quality
Because most firms don’t increase prices every year, when you come to a final number, go a little higher. This is because you’ll likely spend 3 to 5 years before you raise prices again and you want these new prices to be sustainable.
If you don’t want to do this, you need to create a system for raising prices. Try doing it yearly at a set percentage increase and keep your clients in the know.
Do what works best for you and don’t wait – it’s a huge opportunity.
