Revenue Impact Calculator
Input your CPA firm’s numbers to see how Advanced Pricing Methods® increases your per-sale revenue!
Experiment! See your firm's results with Advanced Pricing Methods®
Across several firms that are institutionalizing Advanced Pricing Methods® (APM) over the past six years, two solid trends emerged:
1) 60% or more of buyers, when provided 3 options, select the middle or high option, or a hybrid of the two. Rule of thumb: the high option price is 2x the low.
2) Win rates rise 25% when firms use APM®. The psychology of price options combined with better verbal positioning that Fore teaches, results in more customers hiring the firm than with a single-priced old-style approach.
The big eye-opener is what happens when you compound these two trends!
Click for Calculator Instructions
To begin, simply plug in your best guesses for three of your firm’s (or practice group’s) current metrics:
- # of sales opportunities per month
- your average proposed price
- your typical win rate (max is 74% so we don’t exceed 99% after APM)
Then see what happens if you were to use APM RIGHT NOW!
Look at #1 to see what USING THREE OPTIONS (with 2x spread) does to your revenue (for every 10 closed sales). While 40% still buy at your typical price, 60% will upgrade to the middle or high offering, or a hybrid of the two options.
Next #2 is just the elevated win rate you could expect to see with Fore’s APM®. If you think 25% is crazy high, fine, toggle to reduce it to a modest 10% improvement.
Then, SEE WHAT HAPPENS in #3 (for every 10 opportunities) when 25% (or even just 10%) more of your opportunities close, PLUS 60% of buyers choose to spend more with you than your single-price offering would have brought.
ADVANCED PRICING METHODS® — PROJECT THE IMPACT ON YOUR NEW SALES
START HERE!
SIMPLY INPUT YOUR FIRM’S CURRENT DATA:*either for whole firm or a practice area
1) REVENUE SHIFT WHEN YOU PRESENT 3 OPTIONS THE APM WAY (BASED ON 10 WINS)
Avg $ ea | Avg extended to 10 wins | |||||
---|---|---|---|---|---|---|
Current Way | 35,000 | |||||
New Way | Good | Better | Best | Hybrid Est | ||
3,500 | 5,250 | 7,000 | 6,125 | |||
Typical Selection Ratio | 40% | 20% | 20% | 20% | ||
Revenue per 10 wins | 14,000 | 10,500 | 14,000 | 12,250 | 50,750 | |
15,750 | Typical 45%+ increase |
2) YOUR NEW WIN RATE WITH APM
3) YOUR COMPOUNDED REVENUE-IMPACT PROJECTION
Proposed $/mo |
Avg sales/mo @ current win rate of 65 |
|||||
---|---|---|---|---|---|---|
Current proposed per mo | 17,500 | 11,375 | ||||
New Way | Good | Better | Best | Hybrid Est | ||
3,500 | 5,250 | 7,000 | 6,125 | |||
Your avg proposed $ by level by mo | 17,500 | 26,250 | 35,000 | 30,625 | ||
Typical selection ratio | 40% | 20% | 20% | 20% |
Avg sales/mo @ new win rate of 90% |
|
Selection ratio extended to win rate | 6,300 | 4,725 | 6,300 | 5,513 | 22,838 | |
PROJECTED SALES INCREASE/MONTH @ NEW WIN RATE W/APPLIED OPTION-SELECTION RATIO | 11,463 | or 101%; |