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


Maximum 74%
 
 

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


You can adjust win rate downward if you think 25% is ambitious.
Your new projected win rate of %

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%;



Ready for New Results?

PO Box 801626
Santa Clarita, CA 91380

michelle@foreadvantage.com

661.360.7968