Paul Shrimpling of Remarkable Practice explains why price is inextricably linked to value and why your competitors' prices shouldn't dictate what you charge.
Several conversations with a few accountancy firms in recent weeks have made me angry. I’m angry at the natural tendency to accept price sensitivity as a simple compare and contrast exercise with the other firms’ rates in the market. This suggests that other firm’s prices determine what price your firm can charge – what codswallop!
Yes, competitive pricing has an influence but there are four components determining the right price:
- Your clients’ perception of value
- Your clients’ willingness to pay
- How well you communicate your firm's offer
- Competitors p...