This blog from Katrina Aarsman is worth reading especially to those bookkeepers who wanted to find out and prove their own value. This is worth sharing too.
I speak to many bookkeepers that struggle with determining their own value and there are many reasons for this.
Firstly, they question what pricing and value is out there in the marketplace:
- What are my prices compared with other bookkeepers?
- How do I compete with the overseas model of $30 per hour or less?
- Will the business owner accept my rates?
Secondly, they question themselves:
- What am I worth?
- Can I do the work?
- Can I provide the service to the clients’ expectations?
Thirdly, they question their own value:
- I can do the data entry but what value is that to the owner?
- Am I good enough?
- Can I really ask that much?
I often say set your prices and go find clients that match your price. Now, this may seem easier said than done, but if we really break it down it becomes a little easier. If you did some work on identifying your Ideal Client before accepting those that want you, you could attract a different client base.
For example, if you were engaging with clients that only wanted you to touch their work quarterly, then you would be pressured to get the work done in the busy times of your year and the client would be more price-conscious because they are controlling your input for their business. And this also puts pressure on your cash flow and possibly theirs.
If you attract clients with low monthly invoicing they will keep you busy and often more pain than they are worth. You can keep busy with several low-value clients that put pressure on your time and possibly emotions. Maybe they don’t pay on time or give you paperwork on time, always late in signing authorities, constantly asking questions during the week – then question your bill.
We have all had them. But what I would like you to consider is the possibility of having less clients but are high paying. Those that value you and your staff, abide by your systems and time frames and pay on time.
If you spend some time identifying who those clients are and have a system to identify them when you are attracting and engaging new clients you will see the change in your business.