The Circle of Price – why you need to charge what you’re worth when growing a bookkeeping business.

I was mentoring a bookkeeper this week who was complaining that her clients didn’t value her so I asked her what she was charging. She said old clients were per hour and new clients . There were two problems. Firstly she is a Registered BAS Agent, has the required PI Insurance, undertakes ongoing professional development and provides her clients with reliable information so obviously wasn’t charging what she was worth.  And secondly we’d had this discussion about a year ago but she didn’t put up her prices then! You’ve heard me harp on about getting paid what you’re worth and by the end of our chat I think the message finally got through to her.

If you need convincing that you should get paid what you’re worth you might be interested to hear what Dr Greg Chapman, MBA and Director of Empower Business Solutions calls “The Circle of Price”.

 

 

I love his simple explanation:

  1. The more you charge, the more you are respected.
  2. The more you are respected, the more your clients comply with your recommendations.
  3. The more they comply, the better the results they get.
  4. The more results they get, the more clients you get.
  5. The more clients you get, the more you charge.
  6. The more you charge, the more you are respected.

Perhaps when you first met your client they were a “rescue job” and you used your expertise to tame the bookkeeping monster and they are finally feeling in control and you’re empowering them around their finances by giving them reliable information to enable them to make strategic decisions about their business. You’re providing them with five star service and an integral part of their team. What value do you think that has for your client? Are you charging enough for it?

Love to hear your thoughts.

3 Responses to The Circle of Price – why you need to charge what you’re worth when growing a bookkeeping business.

  1. Hi Debbie, I totally agree with the fact that I know that I am worth more than people are paying me at this moment. (my hourly rate changes between .50 and .00)

    But the thing is that I have to compete with so much other bookkeepers, who are offering their bookkeeping services for a .00 per hour…and to be really honest…I can not compete with that!

    I tried to make a change last year, but didn’t dare to go through with it because I was afraid of not getting the client…even with the .00 p.hour I am charging them now, they where saying I was not cheap…?! But with all the costs it’s almost not worth it…!

    I booked a place in the seminar in Melbourne, I am looking forward to it and hope to get good ideas how to deal with these issues…

    Thanks for your email!

    Kind regards, Natasja

  2. Hi Debbie, Excellent timing! I’ve just started to review my rates for mailing in June for July increase and needed that boost! Thank you, Kay

  3. Thanks Debbie, found this very interesting and informative. I have passed it on to a couple of small business owners that I know also.