Accounting is a service that every business needs, so there is a lot of competition. And since many of the same accounting principles and skills apply across industries, many firms are competing for every company out there. This has forced many CPA firms to lower their prices in order to get more clients for their businesses.
Today I would like to give you 3 reasons why you should never compete on price as a CPA firm or accountant;
YOU ARE UNIQUE:
I know you are aware of this but I just wanted to buttress this further. Even if there are a million CPA firms in your state or province, there will never be another business like yours, with your exact quality of staffs, with your exact expertise, with your exact network and with your ability to solve clients problems. You are unique, your staffs are unique, your ability to solve accounting problems, tax preparation, planning and more is unique to your firm. There will never be another business like yours. You are not like every other firm and are unique.
YOU WILL GO OUT OF BUSINESS:
Competing on price is not an effective business strategy for an accounting firm. Even if you end up getting more clients, you would only end up doing more work for less pay. Imagine working twice as hard to make the same profit in a month, to pay for the same overhead costs, to pay staff salaries and more. The truth is you will eventually go out of business. You will gain absolutely nothing by lowering your prices and the type of clients you might end up with will not who you would have wanted.
YOUR CLIENTS CAN AFFORD YOUR PRICES:
I have heard it said many times that there are accounting softwares that makes needing an accounting firm unnecessary. That is absolutely not true. When you think about the value that accounting firms bring to the table, you would know that they are simply irreplaceable. The truth is irrespective of the price you choose to charge for your ongoing services, there businesses out there who would be able to afford it. There is no such thing as a service charge that is too expensive, no such thing. If a prospect tells you that your service charge is too expensive, then you are speaking to the wrong prospect. Your price is right and there clients out there who are in need of the unique services your firm bring to the table.
We have just looked at 3 reasons why you should never compete on price as a CPA firm. The truth is as a business you should always think about how to add more value to the services you offer rather than how to lower your price to get more clients. Focus on Value not price.
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