Bookkeeping Services is about characterizing and recording daily financial transactions and preparing financial reports as a general ledger. Taking into account the receivable and payable accounts. Now the bookkeeping service providers also provide payroll services and tax preparation services along.
How to charge your Bookkeeping services is a technical decision? How would you know how to charge your bookkeeping services and how much?
It is crucial, and you should not do it arbitrarily. There are some strategic ways to do the pricing. You can check out pricing psychology and how other successful firms charge services to make products and services more attractive to those willing to pay. In this blog, we are going to cover the pricing strategies for bookkeeping services and some tips.
Pricing Strategies For Bookkeeping Services
There are many ways that bookkeeping services can be charged to understand this and to. They are then the pricing segment and the competitive prices.
Type Of Strategies
There are dozens of Marketing Strategies, it all differs or varies from market to market. There are the five most common strategies that many leading firms are using to attract customers.
Skimming
The pricing strategy in which product price is high when launched in society and gradually lowers after the time this type of pricing is ideal for those companies who enter into the emerging market.
Presentation Pricing
Opposite to skimming in this, a firm enters into a market that keeps the prices low, cuts the competitors, and slowly rises. It helps you develop a solid customer base, which is a big plus.
Premium Pricing
This pricing strategy is only used for high-end lifestyle brands with very high-quality products, which is the key to success in this strategy and targets the high-income market.
Economic
It involves developing a strategy for people looking forward to saving money as long as possible—for example, big stores like Walmart.
Bundle
Sometimes a company makes bundles of products or packages of two to three products and sells them called bundle pricing. Which pricing strategy is more suitable can be determined by understanding your upfront needs. If you have launched your business, experiments can tell you which will work for you.
Pricing is a challenge when it is a service, not a product if you wonder which strategy you should use. Use take a minute out and check other giant accounting services providers what their pricing structure is. We will talk about three common pricing strategies.
Pricing Structure Of Bookkeeping Services
Pricing structures vary, and it depends on the Workload.
Fixed Pricing
It sounds like you change your employee at a fixed rate, and both the employer and employee are aware of it. Typically, it remains constant throughout the period. This structure of pricing is best for repetitive services such as daily accounts closing.
Advantages
- Easy to practice
- Work and reward is clear
Disadvantages
- Inflexible
- Reflects less value than clients get from your services
Hourly Pricing
The time-based approach is a hectic one as you need to track all the hours spent on that project and then wage all the employees on that project based on their hours paid.
Advantages
- Values the employees as your firm employees the clients
- Flexible
Disadvantages
- Bills and fees turn out to be unexpected
- Complicated one
Value Pricing
Value-based pricing is the strategy in which you price your service according to the value the clients perceive in you. It is not about charging the high, but about charging per the market information and client segments.
Once you understand your clients and what the competitors are offering. Then you decide what your service will provide and what is differentiating.
Advantages
- Will improve clients’ loyalty and base for you?
- Helps Prioritize clients
- Builds clients and firm’s relations
- Long term beneficial
Disadvantages
- Requires a lot to know about the customer profile.
- Complicated to implement
- Very time taking
Conclusion
The way you charge your services should represent your values and should not be just an afterthought. May your ideas inform you about the pricing strategy.
Do you pride yourself on being transparent?
Keep this up and let your customers know what you are working on. If you are working with big clients, then your price tags should be premium as a client looking forward to a premium experience will go for premium price tags. The above-discussed Pricing strategies and structures are the majors and the most common ones. Further, your target market research will guide you.
