One Size Doesn’t Fit All
Small and Medium Enterprises (SMEs) are incredibly varied. They’re a key part of our economy, but they’re often misunderstood. As accountants and bookkeepers, it’s crucial to appreciate that every SME has its own challenges, goals, and complexities. Instead of applying a standard approach, we need to tailor our services to meet each client’s unique needs.
The Time-Cost-Quality Triangle
When meeting with clients, it’s easy to see the potential for their business. But balancing what you offer with their budget and needs can be tricky. This is where the time-cost-quality triangle comes in. It’s a concept that shows the trade-offs in any service, clients can prioritise two out of three elements; speed, affordability, or quality, but not all three at once. Understanding this helps explain why premium services cost more or why a quick turnaround might impact the final result.
Guiding Client Expectations with the Triangle
Using this triangle in discussions can set clear expectations. Here’s how it works:
- Fast and high-quality service? It’s likely to be more expensive.
- Affordable and high-quality service? It might take longer.
- Fast and affordable service? It may mean compromising on quality.
By explaining these options, clients can better understand the value behind each choice and decide what fits their priorities.
Past Costs and Future Gains
When discussing fees, two key points can shift how clients view costs:
- Past spending: Ask about what they’ve spent on accounting and bookkeeping before. It helps you benchmark and demonstrates the value you bring.
- Future gains: Highlight how accurate accounting can drive long-term savings or growth. Sometimes, investing a bit more upfront pays off down the line.
💡If a prospect mentions what they’ve previously paid and your fee is higher, remember: they’ve come to you because they need a change. Stand firm on your pricing.💡
The Pricing Menu
A pricing menu can simplify things for clients. Think of it as a framework, showing them clearly different service levels and what each includes. This transparency makes it easier for clients to see the value of each option and makes pricing conversations smoother.
Framing Your Services
When designing your services, you could start by distilling them into three or four options. Too many choices can be overwhelming, while too few can limit flexibility. The classic “good, better, best” model works well:
- Basic Tier: Budget-friendly with essential features.
- Standard Tier: The balanced, mid-tier option.
- Premium Tier: More features for those who can invest more.
(☝️You can be a little more creative with the names!)
You can even add a fourth tier (like “economy” or “extra premium”) for additional flexibility. Each step up should clearly show the added value.
So you’ve got your basic structure in place - now what? Turn it into a one-pager, that you can use with your prospect or client to find a starting point for the detailed pricing conversation.
From Tiers to Tailored Proposals: Fine-Tuning the Fit
Your tiers are a great starting point for crafting a proposal:
- Start with a set of services that aligns most with the client’s needs.
- Adjust the details based on their business complexity, such as turnover or transaction volume.
- Keep the expectations you set in mind as you tailor the proposal.
With tools like Socket, you can easily customise pricing while maintaining consistency across clients.
The "Who Does What" Approach
When offering services, there are three main ways to work with clients:
Done By You: The client does the work with your guidance
Done For You: You take care of everything
Done With You: You work together as a team.
While the "Done By You" option may seem more affordable, it often requires more effort from you upfront to ensure quality and compliance. Make sure clients understand this balance.
Working with Tight Budgets
Some clients have limited budgets, but you can still offer value. Try a "directional" service:
- Create a roadmap for what they need.
- Schedule check-ins to review progress.
- Offer guidance to keep them on track.
It’s like being their financial GPS guiding them, even if they’re doing most of the driving.
Upselling by adding Value
After refining a proposal, consider upselling to boost the value of your service. Present a basic package and then also look to offer incremental upgrades or add-ons.
For example, if monthly bookkeeping is standard, offer an upgrade to weekly services for businesses needing more frequent insights. Think about future needs too, mentioning services like CFO support can plant seeds for future growth.
Growing with your Clients using Scalable Pricing
A good pricing framework can also set the stage for future growth. As clients’ needs evolve, they might need to move up to a higher service tier. For example:
“Right now, the 'Basic’' package fits well. But based on your growth plans, we might look at the 'Standard’' package in 18 months for more frequent reporting and strategic planning.”
This shows clients you’re thinking ahead and prepares them for potential investments as their business grows.
By understanding SMEs’ unique needs, balancing expertise with value, and using smart pricing strategies, you can create services that truly resonate with clients. Your pricing approach should reflect the individuality of the businesses you serve, helping them reach their goals while building stronger relationships.
Ready to transform your pricing strategy? Your clients and your business will appreciate the difference.
