Brought to you by
BrightPay logo

The payroll solution that provides all you need for Auto Enrolment.

Save content
Have you found this content useful? Use the button above to save it to your profile.

10 drivers to get your AE strategy right

21st Feb 2017
Brought to you by
BrightPay logo

The payroll solution that provides all you need for Auto Enrolment.

Save content
Have you found this content useful? Use the button above to save it to your profile.

Increasing your prices is never very popular with clients. If you are a bureau, deciding what to charge for auto enrolment services can be a daunting task. Your client will want to know what they are getting in return for the additional fee, therefore, communication will be fundamental to your success. If you do get your pricing strategy right, your clients will thank you for taking the automatic enrolment duties off their hands.

Best practice is to clarify the new pricing structure, specify the date at which it will come into effect and explain the benefits. It is natural for clients to be cautious when they are told that the prices are increasing, however you must be confident in outlining the additional work and expertise required to process automatic enrolment.

Communication

By explaining your price increase and justifying the benefits for your client you will naturally be more successful. A good idea would be to send clients pre-assessment overview or report in advance which details each employee’s pensionable pay, assessment work category and employee and employer contributions. View sample pre-assessment report here.

Customer Feedback

On a one-to-one level you should seek advice from your best customers and explain how your business is adapting to the new auto enrolment obligations. Make it clear that you need to cater to their needs and handle these new AE tasks whilst still being fair to your clients.

Value Proposition

Be sure to convey the client benefits of outsourcing AE tasks to you. If you take the opportunity to inform clients about the added value, they are more likely to remember and understand your service offering. Make every effort to be positive by reassuring your clients that they will get the best quality service.

Charging Hourly?

Charging by the hour is best avoided if possible. Remember, as a bureau you are selling your expertise. If you are using software tools that allow the automation of AE, it is inevitable that you will become more efficient in AE processing.

Cover Costs

Naturally, you will want your increased prices to at least cover any additional costs incurred for processing AE. Some software providers have decided to charge separately for AE modules or add-on's. It is important that bureaus shop around for payroll software that offers automated AE functionality at no extra cost. There are good solutions on the market that offer just that for just £229, with no restrictions on the number of employers or employees that can be set up on the system. Good payroll tools will include AE functionality for free and automate AE tasks.

Automate & Streamline

In the last few years, technology has changed the nature of handling payroll for your clients. Recent developments in payroll have allowed bureaus to seamlessly process RTI and now technological advancements are doing the same for automatic enrolment tasks. Automation reduces processing time, increases accuracy and reduces human error.

Pre-Staging Discount

Some payroll bureaus have increased their prices but offered a discount if their clients sign up before their staging date. By outlining a savings opportunity, clients are much more likely to focus on how much they save rather than how much extra they need to pay. It will be important to remember your loyal customers and it would be worth considering promoting a reduced rate for this client segment.

Various Pricing Options

By offering a range of pricing packages, clients can evaluate each one and choose the package that most suits their needs. One example is a tiered based pricing structure, where clients can choose from a menu of pricing options. Clients can choose what they want to pay for and what they would like to outsource to you.

Cross Selling Opportunity

If you are a firm that offers other services such as tax returns, bookkeeping, audits, tax planning, HR services, etc. you will have an opportunity to cross-sell these services, especially to new clients. By offering a related service as an upsell or cross-sell, it can become part of your strategic growth plan.

Get Going!!

Get out there and make sure your clients know you are providing automatic enrolment as a chargeable service. Your clients will be surprised if you don't increase your charges, especially with the additional setup time initially required.

La fin....

There are many key factors to consider in order to take full advantage of this unique opportunity. Early and clear communication is key to successfully increasing prices. Your customers will take the news a lot more graciously compared with suddenly springing it on them. By clearly outlining the additional benefits that you bring to the table, clients will readily accept the service offering and you will ultimately succeed.

Get organised and start engaging with your clients today! Decide on a pricing structure that suits your business. Another useful guide published on AccountingWEB examines Three unique auto enrolment profitable pricing strategies.

 

BrightPay

         

 

Tags: