What's Holding You Back from Ditching Hourly Billing?

Sep 15, 2022

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!

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Karen Whitely

Founder, Right Click Business Consulting

"I am so grateful for everything you do for the Academy members Martine.

I've been implementing the fixed prices and proposals strategy over the past few months and what a difference that's made to my business (and my mental health!). The fixed pricing and proposals learnings got me out of a few less than desirable situations and helped me put really strong processes in place to ensure I only take on clients that were the right fit for my business.

I can only say how amazing it's been cutting a lot of the dead wood. I've taken on some lovely new clients who have engaged my services since implementing the proposals etc - many have chosen a higher level than I would have expected. My existing clients have also surprised the heck of me! Some of those have also chosen a higher level than I expected.

I'm no longer chasing money, I know what my revenue is going to be each month and the sense of control over my business is indescribable. The pressure is off beyond what I could have ever expected. I know for a lot of people it's uncomfortable going through this process, but if I could only bottle the level of confidence this has given me and show them what it feels like to have the weight taken off, I'd do so in a heartbeat.

Thank you so much for everything you do for your members Martine. The value you bring is absolutely priceless!"

Chrissie Smith

Founder, Chrissie Smith Bookkeeping

"Thank you again Martine. Everyone in our industry needs to jump on the band wagon of this pricing method!

Lots of knowledge bombs, especially on how to have those value add discussions with existing clients. It was like a beacon going off in my head.

I've finally realised that my clients are happy to pay for my knowledge, not just my time.

I think I just needed that support and I have definitely found it in you & Bookwiz Academy!

Thanks for helping me take these steps. So much clarity, it feels really good."

Brooke Arnott

CEO, The Small Business Lounge

"I have been working with Martine for a number of years now to assist with the growth of The Small Business Lounge.

Having her as my mentor and sounding board has definitely assisted me with achieving my goals at each stage of our business growth.

I would highly recommend Martine and her Academy to any bookkeeper or accounting firm."

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Hi! I'm Martine Hoosen

Welcome to Bookwiz Academy, where I share over 23 years of a multi-award winning bookkeeping, business ownership & mentoring experience with you!

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