Episode 76: Pricing for Growth: Aligning Client Fees with Your Business Goals

Aug 7

Heads up: I use affiliate links for my fave products. If you click and purchase, I may receive a small commission at no extra cost to you.

Conquering Workflows & Systems for Bookkeepers & Accountants podcast with Alyssa Lang, founder of Workflow Queen and Magnetic Bookkeeping & Consulting. Episode topic: Pricing for Growth: Aligning Client Fees with Your Business Goals

In this episode, Alyssa Lang covers the common mistakes bookkeepers and accountants make when pricing their services and offers, providing insights on reevaluating pricing structures for optimized profitability.

In this episode you’ll hear:

How to reanalyze your current clients and service fees for profitability and growth
How to determine your base rate and ideal price, and gradually increasing rates to align with your financial goals
Identifying and mastering one core problem at a time to effectively scale your business

Resources mentioned in this episode:

🧡 Join our FREE The POWER to Breakthrough Bootcamp (8/19 - 8/23)

Listen to the Full Episode here 👇🏼

🎧 Listen on iTunes ⇨ Click here

🎧 Listen on Spotify ⇨ Click here

🎧 Chose another listening platform ⇨ Click here

Today, I’m bringing you this episode straight from the heart of the great outdoors, thanks to my trusty Starlink. 🌲✨ Picture the chirping birds and gentle rustle of the wind—it’s like you’re right here with me in Big Bear, California!

This episode dives into something I like to call offer optimization! As bookkeepers and accountants, many of us wrestle with our pricing strategies, whether we’re just starting or have been in the game for years. Let’s dig into how to fine-tune your pricing to scale your business, reduce stress, and boost your profitability!

My Pricing Journey

Let’s start with a little story. When I first dipped my toes into the world of bookkeeping, it was supposed to be a side hustle. I was bartending and just wanted to make a little extra cash. Back then, I had no idea this “side gig” would morph into a full-blown business with a team and clients scattered across the U.S. and even students around the globe. Crazy, right?

Initially, I priced my services based on what I thought I needed to get by, not necessarily what they were worth. Fast forward to today, and I’ve had to adapt my pricing to reflect my growth, experience, and the value I provide. If you’re still using the same pricing model you started with, it might be time for a change.

Reanalyzing Your Clients and Service Fees

If you want to optimize your bookkeeping business, it’s sooo important to reanalyze your current clients and service fees. This isn’t just about numbers; it’s about making sure that your pricing strategy aligns with your business goals and personal values.

Here’s how to get started:

List Your Clients: First things first, write down every client you work with and what you currently charge them. Take a moment to assess how these numbers make you feel.
Evaluate Direct Costs: Next, calculate the software, team, and other direct costs associated with servicing each client. Understanding these costs is essential for determining your profitability.
Determine Profit Margins: Once you have your costs figured out, assess how much you’re profiting from each client. If the margins aren’t where you want them to be, it’s time to rethink your pricing.
Analyze Client Fit: Identify clients who are a perfect fit and those who aren’t. Working with clients who appreciate your value is key to a fulfilling and profitable business.

I remember a time when I took on clients that didn’t quite align with my values. They were nice people, but the fit just wasn’t right. It took me a while to realize that saying “yes” to everyone wasn’t sustainable. By focusing on clients who shared my vision, I was able to create a more balanced and rewarding business.

Setting Your Base Rate and Ideal Price

One of the most common pitfalls I see is pricing without growth in mind. When I first started, I followed advice from a guru or used a formula I found online. But real growth requires that you price for your business’s future, not its past.

Here’s how to set your base rate and ideal price:

Identify Your Base Rate: Know the minimum rate you need to charge to cover your costs and make a profit. For us, nothing is less than $400 a month for basic bookkeeping.
Set Your Ideal Price: Determine what you aspire to charge. Consider the value you provide, market rates, and your financial goals. Your price should reflect the value you deliver and the quality of service you provide.
Gradually Increase Rates: Start nudging your prices upward, $25 at a time, until you hit that ideal rate. It’s a gradual process, but it’s crucial for aligning your rates with your financial goals.

In the early days, I remember feeling guilty for raising my rates. But then I realized that my expertise and services had grown, and it was okay to charge accordingly. I remember telling a client about a necessary rate increase, and they responded, “I’m happy to pay for quality service.” It was a turning point for me, reaffirming that clients who value your work are willing to pay for it.

Mastering One Core Problem at a Time

Running a successful business isn’t just about pricing; it’s also about solving problems effectively. Many entrepreneurs tackle too many issues at once, which can lead to burnout and inefficiency. Here’s how to identify and master one core problem at a time:

Identify Core Problems: List the main challenges your business is facing. This could be anything from client acquisition to workflow efficiency.
Prioritize Issues: Choose one core problem to focus on first. This should be the issue that, if solved, will have the most significant impact on your business.
Create a Strategic Plan: Develop a plan to address this problem, breaking it down into actionable steps.
Implement and Evaluate: Put your plan into action and regularly evaluate its effectiveness. Adjust as needed and move on to the next core issue once resolved.

I once juggled several issues at once, thinking that multitasking was the way to go. Spoiler alert: it wasn’t! By honing in on one core problem at a time, I found that not only was I more effective, but I also had the brain space to think creatively and strategically about my business.

Aligning Your Pricing with Your Why

Optimizing your offers isn’t just about making more money—it’s about aligning your pricing with your goals and values. For me, that means having the freedom to work from the middle of the woods and spend time with my dog, Max. 🐶 For my team, it means supporting their dreams, like visiting every national park in the U.S.

Understanding your “why” is essential. What do you want to achieve with your business? How do your rates reflect that? Your pricing should empower you to live the life you desire, whether it’s traveling the world, buying your dream home, or simply having the freedom to choose how you spend your time.

I’ve always valued the ability to work remotely and enjoy the outdoors. My team knows that I value work-life balance, and I encourage them to pursue their passions, too. By setting rates that support our goals, we’re able to live fulfilling lives both inside and outside the office.

Join The Power to Breakthrough Bootcamp!

We’re going to dive deeper into this topic in our upcoming free bootcamp from August 19th-23rd. If you’re ready to break through that ceiling and optimize your offers, join us! We’ll cover mindset, systems, team building, and more. You can sign up by clicking here.

Bootcamps have been a game-changer for my business and personal growth. I’ve seen firsthand how investing in learning and development can transform not just my business but my entire outlook on what’s possible.

Thank you for tuning into this episode and joining me on this journey. Take a step back, evaluate your current structure, and make adjustments that reflect your worth and goals. You deserve it!

Until next time, happy optimizing! 🌟

Thanks for listening. If this episode inspired you in some way, take a screenshot of you listening on your device and post it to your Instagram stories and tag me, @workflowqueen For more information about the Conquering Workflows & Systems for Bookkeepers & Accountants Podcast or interest in our programs or mentoring visit our resources below:

Visit our website: workflowqueen.com

Follow the Blog: workflowqueen.com/blog

Connect on LinkedIn: linkedin.com/in/alyssa-lang-wq

Connect on Instagram: instagram.com/workflowqueen

Connect on Facebook: facebook.com/workflowqueen

Podcast Publishing Tools we use: