I often advocate for setting high prices in your firm but it’s also possible that doing so will lead to increased workload.
In this episode, I discussed the benefits of high pricing, the potential risks, and strategies to minimize the drawbacks.
Listen below.
0:28 I often recommend pricing high in your firm, because many firms undercharge. Higher prices also ensure better margins while reducing your workload.
1:09 A bit of a backstory. I was coaching a firm in Australia that had been underpricing, but then increased their prices and margins to a respectable level by providing CFO work.
1:38 The problem was the the firm owner was stuck working over 80 hours per week due to the new model, as only he had the expertise to deliver high-level CFO services.
1:55 Before raising your prices, especially for premium clients, ensure your services are productized so others in your firm can handle the work, and it doesn’t all depend on you.
2:11 Episode 143 covers what productized services are, why I recommend them for firms looking to systematize and scale, and how to implement them.
2:47 If your goal is to move upmarket and add more advisory services, ensure you: 1) Productize these services, 2) Have other people on your team to help deliver the work, and 3) Run a capacity plan.
