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Grouping your corporate and accounting services into packages, or bundles, is one of the underrated strategies to grow revenue and bring extra value to your clients. Here is why.
There are many pricing strategies you can adopt, from charging per transaction to offering subscriptions. In this article, we'll look at the bundle or package pricing strategy and see why it's worth considering to grow your revenues in 2023 and onwards.
In this article
A pricing strategy is a plan used by businesses to determine how much to charge for their products or services. It is an important component of the overall marketing strategy, as pricing can have a significant impact on a firm's revenue and profitability.
Here is the list of the most popular pricing strategies, classified by type:
💡 Bundling is a strategy where two or more products or services are offered together as a package deal at a discounted price. One of the most popular bundle examples in our day to day life are combo meals at fast food chains: burgers and fries are usually cheaper in a package rather than bought separately.
Talking about finance and accounting firms, the most traditional pricing model is cost-plus: when you add a markup to the cost of a service in order to determine its selling price. The markup is typically a percentage of the total cost and is intended to cover the company's overhead expenses and generate a profit.
The best example of a cost-plus pricing strategy is when you bill per hour. It is a traditional pricing method where the firm charges clients by the hour for the services provided. The hourly rate may vary depending on the seniority of the staff members who are working on the project, the cost of accounting software used to handle accounts, the number of currencies, and other factors.
However, more and more firms are using year-round value-based or fixed fee pricing, charging a set fee for a specific service or project, regardless of the time and resources required to complete it. As this pricing model is often used on a retainer basis, accounting firms may suffer significant profit losses, for instance, if an accounting software vendor suddenly raises its subscription fees.
Depending on a firm's goals, cost-plus or value-based pricing strategies can be further specified as:
The report delivered by Currencycloud payments firm in 2021 found that 71% of businesses believe that customers value having their financial services bundled in the past, 95% in the present and 96% in the next five years. Considering these stats, it feels like bundles are well received by clients. What about the advantages of bundles for your practice?
Here are five main points that make this pricing strategy beneficial:
However, there are also significant downsides, driven by the complexity of designing and implementing a bundle pricing strategy. In other words, you need to cook them right: determine which services to bundle, how to price them, and how to communicate the value proposition to clients. These are potential risks of not getting bundles right:
Reinhart & Associates is a certified public accounting firm. The firm offers various accounting and bookkeeping services as part of their bundled packages, including monthly financial statements, bank account reconciliations, accounts payable and receivable management, payroll processing, tax preparation, and financial planning.
These packages are designed to provide businesses with comprehensive and cost-effective solutions for their accounting needs. The firm states the benefits of using bundled accounting services, such as improved accuracy, timely financial reporting, and increased productivity.
The bundles they offer:
To implement bundled services, start by analyzing your clients' needs and preferences to determine the most popular services, then bundle complementary services that align with those needs to offer additional value. For instance, secretarial services can be a good addition to your incorporation package, especially if they are required by law.
When you decide on the contents of the bundles, wrap them up, speaking about the overall benefits they bring. Don't focus on services, but on the value they bring to your potential customer. Communicate your bundles through your website, social media, and email marketing, and offer special promotions and discounts to encourage clients to try them out!
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