As a responsible professional firm, we are conscious of amountfor which we raise bill on clients for our services. Of course the regulator Institute of Chartered Accountants of India has come up with guidelines on minimum scale of fees for various services the CA firm offers. Of course we keep these guidelines as our benchmark while billing clients but we raise bills only as an insignificant percentage of value created by us for the client on the proposed assignment. Butwe follow value based pricing in the interest of our clients. Value pricing is about trying to put yourself in your customer’s shoes and understanding the value you and your skills bring to them
Value pricing is a way of billing a client for services provided based on the value of the service (or advice) instead of hourly billing which most of the firms follow based on no of hours spent .Value based pricing factors in the maximum amount a given customer is willing to pay for a particular service before the work begins. Itreflects the client's perception of the value he or she receives from the services that a firm provides
This value to the client may be in the form of tax savings, increased profits, having a trusted adviser to call upon, or simply having a professional do the work. The scope of services, price, andpayment terms are defined before the work begins and may be set by project or for a range of services to be provided over a period of time. A sample package of services might include a tax return, accounting services, monthly or quarterly meetings with a partner, and unlimited phone calls during a calendar year, all to be provided for one price that is agreed to upfront.
Value pricing is really about setting a price commensurate with the value created, not the time it takes to do the work.We are consciousof the fact thatwe willnever get paid more than we thinkwe are worth.
Value pricing allows our clients to gain insightinto the upfront cost and the service they will receive for the set price. This gives clients visibility into what they're getting into;helping our consultants to avoid the unpleasant conversation around the traditional additional hourly charges during or after the work has been completed. Valuepricing involves setting a fixed price in advance for a service measured by the value it creates for the client.
We therefore documentour engagement intoa formalengagement letters whileon boarding a new client or offer services to a loyal existing client