For years, our tax advisory firm relied on the traditional model of hourly billing. While it seemed like the natural way to charge for our time, it wasn’t the best way to reflect the true value of our services. Over time, we realised that this approach wasn’t working for either us or our clients. Clients often didn’t know what to expect in terms of costs, and we struggled to ensure that we were charging appropriately for the expertise and results we delivered.
That’s when we decided to make a change. We looked into figsflow’s pricing software for tax advisers to help us move away from hourly rates and towards dynamic pricing that better reflects the value we bring to the table. The results were significant: we saw a 35% increase in profitability within just one year.
The Limitations of Hourly Billing
When it comes to tax advisory work, no two cases are the same. Some clients need straightforward advice, while others require complex, multi-faceted strategies. With hourly billing, we found ourselves in a difficult position: clients with simpler issues were paying for more time than necessary, while more complex cases didn’t always capture the full value of the expertise required.
Additionally, clients often felt uncertain about what they would end up paying, which led to frustration. The lack of transparency and the unpredictability of hourly rates simply didn’t align with the service we wanted to offer.
Why We Chose Dynamic Pricing
Switching to dynamic pricing with pricing software was a game-changer for us. Dynamic pricing allowed us to base our fees on the complexity and scope of the work, rather than the time spent on it. This meant we could offer more personalised, transparent pricing that directly reflected the value of the services we were providing.
With the new system in place, we could offer fixed prices for simpler services like tax return preparation. For more involved services, such as business structuring or detailed tax planning, we could adjust our pricing based on the specific needs of the client. The flexibility to change prices depending on the client’s requirements and urgency allowed us to ensure that our fees were fair but also captured the full value of our advice.
The Implementation Process
Introducing dynamic pricing wasn’t something we could just flip a switch on—it took a little planning and fine-tuning. However, with the help of pricing software, the process was smoother than we expected.
We started by categorising our services into basic, standard, and premium offerings. For each category, we defined a base price, which could then be adjusted depending on specific factors such as the complexity of the case, time sensitivity, or additional consultations. The software gave us the tools to set these parameters easily and helped us ensure consistency across the firm.
What made the process even easier was the software’s ability to provide real-time data on industry standards. It helped us compare our pricing to other firms, ensuring we remained competitive while maintaining the value of our services. It also streamlined the quoting process, allowing us to generate pricing proposals in minutes rather than hours.
Finally
Looking back, we’re really pleased with how far we’ve come. The transition to dynamic pricing has not only made our firm more profitable, but it’s also improved the way we interact with our clients. We’re no longer locked into an hourly rate system that doesn’t truly reflect the quality of service we provide. Thanks to pricing software for tax professionals, we’ve created a pricing model that’s fair, transparent, and ultimately more beneficial for both us and our clients.
As we continue to refine our pricing strategy, we’re confident that dynamic pricing will remain a crucial part of our growth in the years ahead.
