System for pricing
I have just finished reading Effective Pricing for Accountants and like the concepts. I would like to try some menu pricing for compliance services and was wondering if anyone else has adopted this type of thing.
The book shows that based on a survey of firms the average firm charged a price of £250 for a self assessment return containing rental income which is fine. But what I don't understand from this data is the quality of the books/records.
For example, I have a number of clients who require an SA tax return with Land & Property pages as well as Employment pages. Some clients provide bank statements, invoices for allowable expenses and mortgage statements. Others provide a complete analysis and totals for rents received, mortgage interest paid and allowable expenses.
Would it be best to provide a range of prices for my menu - for example £250 to £400, depending on whether or not the client provides detailed analysis/totals?
Any suggestions on how to approach other areas of compliance work in terms of menu pricing would be greatly appreciated, especially if anyone has introduced such a system for pricing - e.g. preparing accounts for non-VAT registered sole trader business, preparing accounts for VAT registered partnership with turnover of c£250k etc.
Also, I feel that some of my fees for this type of work (i.e. rental accounts and SA tax return) are too low and introducing menu pricing will raise some fees threefold. Has anyone experienced this before and how did you fair in terms of explaining the increases to the client?
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