Following on from a previous blog post about Smart Pricing Strategies for Accountants and Bookkeepers Serving SMEs, let’s dive deeper into one of these strategies and understand what benefits offering tiered pricing can bring to your practice.
How Tiered Pricing Can Boost Profits
Pricing is one of the most challenging aspects of running an accounting firm. Charge too much, and potential clients may walk away. Charge too little, and you risk undervaluing your expertise and leaving money on the table. The real challenge? Finding the price point that works for both you and your clients.
A tiered pricing model offers a solution. Instead of a single, take-it-or-leave-it price, you provide multiple options. Clients can choose the level of service that suits them, and you can increase revenue without turning prospects away.
What is Tiered Pricing?
Rather than offering a fixed price for all clients, a tiered model breaks your services into structured levels. The “good, better, best” framework is a proven way to make pricing clear and effective:
Basic Package – A budget-friendly option covering essential services.
Standard Package – A balanced, mid-tier option that appeals to most clients.
Premium Package – A high-end offering with added value for those willing to invest more.
☝️ You can be creative with the names to make them more engaging.
Most clients will choose the mid-level option. The reason? The premium tier sets a high benchmark, making the middle option seem like the best balance of value and affordability. Meanwhile, the basic tier feels limited, steering clients towards upgrading.
The key is clear differentiation between each package. The further along the scale a client moves, the more value they receive. When building your proposal in Socket, you can add “good, better, best” options for the client to select from
Pricing is a Mindset
Many firms hesitate to increase prices, fearing they’ll drive clients away. A tiered system removes this fear by offering choice. Instead of forcing a single price, you allow clients to decide what they’re comfortable with. Even if they choose the lowest tier, you’ve still secured the client, without undervaluing your services.
It also works well for existing clients. Many firms provide the same level of service for years, even as a client’s business and needs evolve. A tiered approach ensures pricing reflects the value delivered, rather than just the time spent.
How to Implement Tiered Pricing
A tiered pricing model works for both new and existing clients. For new clients, it creates an easier decision-making process. For existing clients, it provides a structured way to increase revenue while enhancing their service.
Here’s how to implement it effectively:
- Identify opportunities – Look for clients who may need more from you. This could be a business that has grown or one that requires additional support.
- Start a conversation – A service review call helps uncover their pain points and future goals.
- Structure your offer – Group your services into three (or four) tiers, ensuring each offers clear value. The lowest tier can match their current package, making it easy for them to stay, while the other options provide opportunities for them to upgrade.
- Present the options – Let clients choose the level of support that suits them best. Many will stay where they are, but you’ll be surprised how many will move up when given the choice.
This approach removes the pressure from both you and your clients. Instead of feeling like you’re pushing for a price increase, you’re simply giving them more ways to work with you.
Once you’ve structured your pricing, turn it into a one-page guide. This can serve as a starting point for conversations with prospects or clients, helping them quickly understand their options before diving into detailed pricing discussions.
A Smarter Way to Price
A tiered pricing model increases revenue, helps position premium services effectively, and removes the fear of pricing too high. It ensures that pricing reflects value, not just cost.
More importantly, it benefits both you and your clients. They get a level of service that fits their needs and budget, and you build a more profitable, sustainable firm.
Keen to find out more? See it in action.
