What's Holding You Back from Ditching Hourly Billing?

This month inside the Academy we are diving into Pricing Strategy, and more specifically, about how to migrate clients from hourly billing to a fixed fee model.

Most bookkeepers I speak to understand the benefits that await on the 'fixed fee' side of the fence, and want desperately to ditch the hourly billing mindset, though are just not sure on how to do it.

Some of the things that I see hold people back:

Time

"I don't have time to calculate and implement a new fee structure or pricing model"

Revenue

"I can't afford to spend time 'on' the business - I need to be 'in' it, churning out billable hours and making sure I don't have any revenue gaps"

Expertise

"I'm not quite sure what to charge if I moved to a fixed fee, or how to work out my packages"

Fear

"I worry that my client's won't support the change, and I may lose some"

What some people fail to realise, is that the above barriers are actually being fed by the very same 'hourly billing mindset' that you are trying to get away from.

Moving to a Fixed Fee model will silence the constant ticking of the clock, as you're no longer a slave to time.

It will provide you with the opportunity to optimise revenue and increase profits, as you can build efficiencies through automations and systems (charge the same, work less!).

And, the exercise of working out your fixed fee pricing and packages provides value far beyond the extra dollars and cents you will be earning (and it's actually pretty easy with tools like our Bookwiz Academy Fee Builder).

As for fear. We all feel it. Usually mixed with a dose of procrastination. Though, if you guide your client on the journey correctly, you will likely find that this fear is misplaced.

And by guiding them on the journey, I mean starting the journey well before you utter the words 'price review', 'change in fee structure' or 'change in billing method'. Because, you need to start changing the conversation now, from one focused on time and price, to one focused on value and outcomes.

This value could be tangible outcomes (e.g., a cash flow milestone you helped achieve), or intangible benefits (e.g., responsive team members who the client loves working with).

If you start to shift the conversation from one of time/price to value/outcome, you will also start to shift their mindset (and your own). And it is likely that, when it comes time to make the move, the client won’t even bat an eyelid, as they trust you and the value you are delivering.

Want to learn how to do all this? Join our free Webinar - THE BOOKKEEPER'S GUIDE TO PRICING and get ready to ditch that hourly billing mindset!

Register now - https://www.bookwizacademy.com/bookkeepers-guide-to-pricing-webinar