My friend and colleague Gale Crosley kindly featured an article I wrote in her excellent Crosley+Company Business Discipline of Practice Growth newsletter last week.
Here’s a brief excerpt:
In the early days of new-model exploration, CPAs saw “value pricing” as an opportunity to lift the artificial revenue ceiling “hours X rates” creates. Others defaulted to fixed prices because they detested timekeeping or did it so poorly their bills were just guesses, anyway. Some felt it was a more ethical or appropriate way to price—that a seller should be able to answer a buyer asking “how much will this cost?”—not expecting clients to hand them blank checks. And others figured up-front pricing would be a competitive differentiator. These motivators still exist, but we have new factors at play now, as well.
I also highlight some outcomes from those early adopters and then talk about what it is that partners are telling me this year that’s quite different from before. I don’t want to give a spoiler but it has a lot to do with creating a business advisor culture.