From time to transformation: A smarter way to price
Raj Bhaskar has some words of advice for reframing your value
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By Janet Berry-Johnson | writer
Tired of trading hours for dollars? Raj Bhaskar, co-founder and CEO of Tight, a white-labeled accounting API, says it's time to stop selling minutes and start selling meaning.
Here, Bhaskar shares how accountants and bookkeepers can reframe their value, design client-centric packages and avoid the most common pitfalls of underpricing. —Janet Berry-Johnson
What’s the first step accountants and bookkeepers should take when transitioning from hourly billing to value-based pricing, and how can they reframe the conversation with clients?
Start by establishing the outcomes your clients really need—profit clarity, tax readiness, cash flow insights, not the time spent. Then refocus your pitch on those benefits. For example, say: "We keep you in touch with your profit position every week" instead of "We bill hours each month." Tell clients who value minutes that value is in how much simpler, faster or surer their decisions become as a consequence of your work.
How can professionals package their services to clearly communicate the value they provide, especially to clients who are used to seeing time as the metric?
Create packages or tiers corresponding to business milestones or pain points—e.g., startup, growth or scaling. Base each package on value: timely reporting, audit preparation and proactive tax planning. Eliminate jargon; communicate in terms like "Know your break-even point monthly" or "Never miss a quarterly filing again." Also, deliver the outcome of advisory guidance, not the frequency of check-ins. Clients receive value when they can see the before and after.
What are some common mistakes accountants make when trying to implement flat fees or value-based packages, and how can they avoid underpricing themselves?
A big mistake is carving packages out into old hourly math. It defeats the point. Others undervalue their skill by simply charging for "what they do" rather than what they unlock.
To avoid that happening, look back and audit your last 10 clients: what changes did you unlock for them? Charge on those transformations. And don't skip price testing. Start higher than you're comfortable and work off response, not fear.
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