1. 1 Give Yourself a Raise All audio is streamed through your computer speakers. There will be three attendance verification questions during the LIVE webinar that must be answered via the online quiz at the conclusion to qualify for CPE. Please note: You will not hear any sound until the webinar begins.

2. Give Yourself a Raise Presented by Sandi Smith Leyva, CPA Date: November 13, 2014 Time: 2:00-3:00 PM Eastern 2

3. 3 Learning Objectives Discover how to overcome the commodity problem forever with a document we’ll show you how to create in 30-minutes or less Identify two breakthrough tax return preparation pricing models that will solve your cash flow problems and boost your margins Identify common pricing mistakes and how to get around them Discover what value pricing is, when it should not be used, and what skill you need to have before you can use it

4. The Payoff Just to be clear –If you raise your price $5 as a result of this webinar and bill 1000 hours this year, you “earned” $5,000 in this hour that you might not have otherwise. –If you raise your rates $10  $10,000 4

5. Agenda 5 How to overcome the commodity problem forever with a document we’ll show you how to create in 30- minutes or less Where to find the NSA pricing survey Two breakthrough tax return preparation pricing models that will solve your cash flow problems and boost your margins

6. Agenda 6 Common pricing mistakes and how to get around them What value pricing is, when it should not be used, and what skill you need to have before you can use it The chance to ask questions during this webinar

7. Pricing Success Requires turning our thinking upside-down Open mind Instead of the client being the bad guy, let’s see how we can improve 7

8. Why We Get Price Resistance 8 There is no relationship Do not know how to sell Service is not distinguishable Client is ignorant of what it takes Economy is bad Trust is low

9. Overcoming the Commodity Problem Sell you and your team, not the service Sell the result, not the service Move the conversation from price to value Bundle commodities with non-commodity services 9

10. Overcoming the Commodity Problem You MUST put YOURSELF out there – Yes it’s scary for shy introverted people A well-written bio naming your results and credentials A well-lit, smiling photo 10

11. Overcoming the Commodity Problem Confidence Compassion (you are the dentist everyone fears) Make it look simple to work with you Quick response Our Value to You list 11

12. Our Value to You List Give prospects a list of things you do and don’t do that are value- adds that they have no clue about One of my first mentors 12

13. Our Value to You List We don’t charge for filing an extension We don’t charge for reviewing an IRS letter We point out red flags We don’t ask you to pay in advance We take credit cards for your convenience Our rates are [average, below average] for our credentials, experience, and market 13

14. Communicate your value 14 What do you do differently that distinguishes your service? –Cost saved –Time saved –Intangibles

15. What can you think of? 15

16. Our Value to You List 16 This is more important than you realize This reduces price-resistance This validates their purchase decision

17. It’s all about the education 17 The more you can educate your prospects on the difference, the more you will be able to charge An study from Hinge Research Institute showed that buyers rank education 2X important than sellers as a way to reach them It’s also about your education and being able to discern what your clients value

18. 18 Value Differences in Buyer/Sellers ******** Personal relationship ********** Become a trusted team member Know their industry Alternate perspective Expertise – specialization Shared values From Hinge Marketing Institute study

19. NSA 19 Members: free access to Income and Fees Survey http://www.nsacct.org/about/nsa-store/income-fee-survey

20. NSA 20 Mostly EAs –Write–up $86/hour –QuickBooks advisory $92/hour –MAS $129/hour –Tax services $132/hour –1040 itemized: $233 per return

21. Insights NSA survey – 8% of tax preparers bill hourly –Competition has forced them to go to fixed fees –Bookkeeping is following 21

22. Two Tax Pricing Methods By form – NSA - 42% bill for tax fees by form Year-round – monthly fee 22

23. By Form 23 Put it in your software or a pricing binder Set ranges and limits – small, med, large When clients see you have a system they will know it’s fair Train your assistant on this; you will cave in and go off system – your assistant will not

24. Year-round 24 Price the annual services for a client, then divide by 12 Clients love not getting a big bill in March/April You can bundle it with other services – less comparable More ability to sell higher value ROI services

25. Common Pricing Mistakes 25 Started out too low or used “employee” rates Fix it by charging new clients differently, phase in price increase

26. Common Pricing Mistakes 26 Lack of marketing and selling skills – You can charge more when you have stronger sales and marketing skills Fix: Be aware of the connection

27. Common Pricing Mistakes We underestimate or leave out indirect costs, overhead, taxes, marketing and selling costs Fix: use your cost accounting skills 27

28. Common Pricing Mistakes Doing work below your capability due to staffing issues or because you are solo in your practice Fix: Delegate 28

29. Common Pricing Mistakes Scope creep Fix: change orders or “promote” them into a new package 29

30. Why Do We Cave in? Money stress –We need to make payroll Neediness –One way to overcome neediness is to learn negotiation skills and to prepare 30

31. Why Do We Cave in? Judging the clients/prospects we have and assuming what they can afford – Read “The Millionaire Next Door” 31

32. Negotiating Techniques Move from yes or no to choice of yesses – 3 packages 32

33. Negotiating Techniques Create an outrageous high-priced offering –Because you will sell it –Some people need to have the best 33

34. 3 Ways to Price Hourly Fixed Fee or Flat Fee –75% of CPAs use fixed fee Value Pricing – starts with the customer’s ROI –Absolutely nothing to do with cost 34

35. Hourly Disadvantages –Client’s interests and yours conflict –Client cannot budget precisely –Comparison-shopping is easy –You can’t bill until after the fact 35

36. Hourly Advantages –Easy - Use when starting out or when you have no history of how long something will take –Use when there is high client trust 36

37. Fixed Fee Fee is fixed and agreed-upon in advance Basically cost plus Can be monthly fixed fee or one-time project 37

38. Fixed Fee Advantages –Client can budget –Easier to sell –Not as easy to compare –You can bill ahead of work –Can be more profitable 38

39. Fixed Fee Disadvantages –Scope must be nailed down –You need history to be accurate –Estimating skills 39

40. Fixed Fee Rec – use fixed fee for most services, especially small businesses and individuals –Use your cost accounting knowledge –Learn estimating, change orders, how to “promote” a client into the next larger package 40

41. Value Pricing There is no relationship to costs Start with the client and their ROI / what they value 41

42. Value Pricing Advantages –Most profitable Disadvantages –Need much higher sales skills –Does not work for commodities, very small businesses where project decisions are not made rationally 42

43. Value Pricing Rec – use on mid-market to large company clients where there is extremely high ROI and high trust and exclusivity 43

44. Your pricing questions 44

45. Your Action Items What one thing will you do from this webinar? Mark your calendar, to do list, project management system, etc. 45

46. Complimentary Newsletter http://AccountantsAccelerator.comhttp://AccountantsAccelerator.com 46

47. Thank you for participating in this webinar. Below is the link to the online survey and CPE quiz: http://webinars.nsacct.org/postevent.php?id=13516 http://webinars.nsacct.org/postevent.php?id=13516 Use your password for this webinar that is in your email confirmation. You must complete this survey and the quiz to qualify to receive CPE credit (live webinar only). National Society of Accountants 1010 North Fairfax Street Alexandria, VA 22314-1574 Phone: (800) 966-6679 members@nsacct.org 47