CAS vs. CAAS vs. Profit First w/ Ron Saharyan

Podcast

Summary

Interested in the free book Ron mentioned? Email Ron here.

On this episode of Growing Your Firm, host David Cristello welcomes back Ron Saharyan, co-founder of Profit First Professionals. They explore the concept of value pricing and its importance in pricing services, CAS vs. CAAS, and much more. 

The conversation delves into various topics, with a promise of exciting announcements between Jetpack and Profit First at the end of the episode. Tune in for insightful discussions and a special reveal at the conclusion!

What you’ll learn

The listener will learn about Profit First Professionals, implementing the Profit First system in their business, client advisory services (CAS), subscription services in accounting firms, strategies for expanding client base, importance of advising customers, and the partnership between Profit First Professional and Jetpack Workflow.

Guest Bio

Ron Saharyan is a renowned figure in the world of small business consulting and financial management. As the co-founder and managing director of Profit First Professionals, Ron has dedicated his career to helping businesses of all sizes achieve financial success through innovative methodologies. 

With a decade of experience in the industry, Ron has become a trusted advisor to countless firms and entrepreneurs seeking to improve their financial health.

Throughout his career, Ron has been a driving force behind the adoption of the Profit First system, a revolutionary approach to financial management developed by author Mike Michalowicz.

By co-founding Profit First Professionals, Ron has played a pivotal role in certifying accounting firms, bookkeeping firms, and financial coaches in this methodology, empowering them to transform their clients’ financial outlook.

Ron’s ethos revolves around the idea of value pricing and the importance of aligning pricing with the value delivered to clients. He emphasizes the significance of being proactive in financial decision-making, advocating for a strategic approach that prioritizes profitability and cash flow management. Ron’s philosophy is rooted in the belief that by focusing on delivering value and maintaining financial health, businesses can achieve sustainable growth and long-term success.

With a keen eye for innovation and a passion for helping businesses thrive, Ron has curated relationships with industry partners to provide cutting-edge solutions to Profit First Professionals members. His commitment to excellence and dedication to empowering firms to reach their full potential have solidified his reputation as a trusted leader in the financial consulting space.

Ron’s achievements extend beyond his professional endeavors, as he continues to inspire and educate through speaking engagements, podcasts, and collaborations with industry experts. His impact on the small business community is profound, as he continues to shape the future of financial management and consulting through his unwavering commitment to excellence and innovation.

Detailed Synopsis

Value pricing should be centered around pricing based on the value customers receive, rather than just offering discounts. In a podcast episode, the guest stressed the importance of grasping the true concept of value pricing. 

They emphasized that it should not be seen as merely giving customers good deals, but rather pricing products or services according to the value they provide to customers.

Ron pointed out that when teaching value pricing, it is essential to shift the focus from offering discounts to aligning pricing with the actual value customers derive from the products or services. 

They highlighted the importance of avoiding labeling it as “value pricing” externally, as it may give the impression of offering discounts. Instead, the emphasis should be on pricing strategies that reflect the value proposition for customers.

By pricing based on the value customers receive, businesses can ensure they are not undervaluing their offerings and are capturing the true worth of their products or services. 

This approach also helps establish a fair pricing structure that aligns with the benefits and outcomes customers receive. Ultimately, by adopting a value-based pricing strategy, businesses can improve profitability, foster stronger customer relationships, and differentiate themselves in the market based on the value they provide.

According to the information shared in the podcast episode, advising clients should focus on providing specific, actionable advice related to their financial decisions. Ron highlighted the importance of offering advice tailored to the client’s needs and concerns. He emphasized that clients seek reliable sounding boards to assist them in making informed business decisions based on their financial situation.

Ron mentioned that being an advisor goes beyond giving general advice; it involves understanding the client’s financial perspective, aiding them in making decisions based on available cash flow, and addressing specific financial concerns. 

For instance, advising on cash flow management, financial forecasting, or financial modeling can offer valuable services that provide clients with actionable insights to enhance their financial well-being.

Additionally, Ron stressed the significance of proactively scheduling strategic meetings with clients to discuss their financial goals and challenges. 

By offering various levels of strategic packages with different meeting frequencies, firms can ensure they provide ongoing, tailored advice to clients based on their individual needs.

In summary, advising clients should involve offering practical, specific, and actionable advice that addresses their unique financial circumstances. By focusing on providing tailored guidance and solutions, accounting and bookkeeping firms can add significant value to their clients and help them make informed financial decisions.

To succeed in business, it is crucial to fulfill commitments and surpass expectations. Ron Saharyan underscores the importance of delivering on promises, exceeding expectations by 3%, and doing so in a timely manner. This principle is vital for establishing trust with clients and colleagues, as well as for achieving long-term success.

Consistently meeting commitments and going above and beyond expectations demonstrates reliability, professionalism, and a dedication to excellence. This approach not only enhances your reputation but also sets you apart from competitors who may fall short on their promises.

In the accounting and bookkeeping industry, where trust and accuracy are paramount, adhering to this principle can lead to increased client satisfaction, loyalty, and referrals. By consistently exceeding expectations and providing exceptional service, you can build strong client relationships and position yourself as a trusted advisor.

Moreover, by striving to perform 3% better than expected, you continuously challenge yourself to improve and innovate. This mindset of continuous improvement can lead to enhanced efficiency, effectiveness, and ultimately, profitability. It also fosters a culture of excellence within your firm, motivating team members to strive for excellence in their work.

Timestamps

[00:00:30] Value pricing misconceptions.

[00:06:12] CAS Evolution.

[00:09:21] Subscription services and value pricing.

[00:12:44] Business consulting for accountants.

[00:16:09] Shiny object syndrome around coaching.

[00:21:09] Advising opportunities for customers.

[00:23:18] Success in Business and Life.

[00:26:55] Confusion around acronyms.