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?
- Unallocated client money 26 1
- Extracting funds from a failing Company 64 3
- Do I need to report this to SOCA 887 14
- Tick & Bash Bristol 503 8
- CG34 Post Transaction Valuation, CGT and Entrepreneurs Relief 128 7
- Can Sage 50 Forecasting work with Excel 2013 or Office 365 123 2
- Can anyone recommend an EPOS system for a newsagents 190 2
- Agricultural Land Hold Over and Roll Over 147 5
- LLP ex-member not being paid accrued profits 97 4
- Luncheon vouchers - Class 1 NICs 140 4
- Quick Easy Quote 132 2
- Accounts formation/ speculative advertising 93 1
- Expenses Apps 107 1
- What is going on with VAT applications?? 1,888 37
- Entrepreneurs relief available? 81 1
- monthly payments 331 5
- Errors in prior year accounts 635 17
- Work experience - pay 164 1
- Rental property: expenses when up for sale and not let 106 1
- Dissolve a Ltd Company - How much do you charge? 291 3
- Proposed Amendments to IAS 1 594
- Property exchange - 8-year legal delay following fall-out 467
- Accounting for Insurance Premium Financing 364
- Sorry ignore me 362
- Will Ni be payable on the salary I receive abroad ? 293
- SAGE Payroll Data for Import to MS Dynamics AX 274
- Cancelled 229
- Cancelled 200
- Bartercard 160
- C79 Discrepancy 159