Total lack of understanding

Just in case you haven't noticed, over the years I've had some discussions with various members about Value Pricing (VP).

The members who disagree with me seem to think VP is about ripping clients off. They prefer a "time/cost plus notional profit" approach to pricing, sometimes using timesheets sometime not.

I come at this from the position that time/cost pricing is selfish/self-centred and effectively makes the profession unethical. Continuing with time/cost pricing will make the accounting profession irrelevant. The conclusion is that accountants will just do is more accounts/tax returns as they gradually become more efficient forced by prices falling.

Many existing practitioners may get out before they experience too much pain, but what about the future?

When you understand VP you appreciate it is the only approach to pricing that:

  • Puts the client first
  • Fully aligns the accountant and client
  • Encourage and rewards innovation
  • Drives down costs on low value work
  • Maximises value for everyone (clients, practice owners, employees and society)

Pricing is fundamental to strategy so it seems sensible to me to understand as much as possible about such an important topic. At the end of the day being an accountant in practice requires much more that technical knowledge of accounts/tax. But, there is another reason to fully understand VP.

Business owners expect/need this extra knowledge (especially now) and an accountant who does not understand VP and just prices with cost/plus will probably only be able to talk to their client about things like job costing. 

Over the years I have invested time and energy to build my knowledge of VP through:

  • Reading books
  • Attending seminars and Webinars
  • Accountants (and other professional) who have adopted VP
  • Using VP

I'm interested to know where you have gained your understanding. What have you actually done to build your knowledge of VP?

Bob Harper

Comments
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Relevant

Bob Harper |
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Profitability

petersaxton |
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Automatic response

petersaxton |
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Oh Bob!

Kent accountant |
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@Bob

ShirleyM |
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@Bob Harper

jaybee661 |
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Understanding

Bob Harper |
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What do I want?

Bob Harper |
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Same old .....

ShirleyM |
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lol ... brick wall

ShirleyM |
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The CUstomer is right

Nom de Plume |
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@Bob Harper

jaybee661 |
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Potential customers

Bob Harper |
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Hope

Bob Harper |
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@Bob Harper

jaybee661 |
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No answer Bob

ShirleyM |
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Still wasting time?!

Kent accountant |
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When we launched Crunchers in 2007

Steve Holloway |
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Lots of energy

Bob Harper |
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Insults

Nom de Plume |
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It's not rocket science

petersaxton |
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Deja vu

BKD |
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Insulting

Bob Harper |
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One post on wiki or one book?

petersaxton |
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@Bob

Kent accountant |
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Doing

Bob Harper |
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Why?

petersaxton |
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No

Bob Harper |
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So, what's the point?

BKD |
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Bob,Thanks for the

uktaxpal |

Apology accepted!

nigelburge |
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Simple

Bob Harper |
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Answer the question, Bob

BKD |
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Question

Bob Harper |
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Quick note

Henry Osadzinski |
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Let the voice of reason cry out!

ChrisMartin |
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Coming Down!

mumpin |
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AVN

Bob Harper |
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Who has the lack of understanding?

petersaxton |
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.

ireallyshouldknowthisbut |

everyone does it their way

marks |

Specific

Bob Harper |
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"you don’t see because you

petersaxton |
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Here we go

Bob Harper |
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Odds

BKD |
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Very odd

Bob Harper |
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Who is the one with the lack of understanding?

petersaxton |
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3-legged

petersaxton |
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Getting it right is best

petersaxton |
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Perspective

Bob Harper |
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