Downward price pressures
Accountants are facing increasing challenges in the form of downward price pressure on their services. Today, for example, more and more people are using online accounting software that allows them to handle the bulk of their taxes online without having to worry about paying a third party. Accountants are facing pressure from:
- Increased competition,
How Accountants Can Secure Custom
Accountants who want to be able to secure customers in this challenging environment will need to find a way to set themselves apart from the competition and to offer extra value to their clients. That means doing far more than just filing a quick report at the end of the year.
1. Value added services
Providing “value added” services is one way of improving the likelihood that potential clients will see the wisdom in working with an accountant, and that they will be willing to pay for what an accountant offers. Whether that's training in software, detailed reports and analysis, a regular newsletter containing business advice, or add-ons such as payroll, insurance and HR, you have plenty of options open to you.
2. Packaged services
There are many subscription services that offer tiered pricing and 'menu based' services where users can pick a package that they need.
3. Operate in a niche market
You will often see accounting practices offering generalised services along with everyone else. There’s little to differentiate one firm from another. Pick a niche – select a segment of the market and tailor your services to appeal to their needs.
4. Be seen as an expert
One of the most successful strategies to combat price pressure is to focus on raising your profile within your chosen (niche) market. Talk to clients regularly, about the benefits of your services: about the value you add and meeting their needs. Publish articles, and give business presentations to raise the firm’s profile. By become the recognised experts, the “go to” firm, you will be able to command higher billing rates.
For some accountants, though, the best option may simply be to look for clients that are willing to pay. Why waste your time chasing the bottom of the pricing barrel, when you know your worth and there are companies out there that will pay that price?
Resisting Price Pressure
If you are interested in resisting the downward pressure on prices or indeed, you are interested in increasing your prices, pick up the phone (04 383-8086) for a chat. Let’s explore your concerns and discuss how we might help.