The Triple Win: 5 Benefits of Offering Three Price Points for Custom Bookkeeping Services
One of the biggest conversations I have when it comes to pricing is with presenting three price points, something I call menu pricing. Understandably, many bookkeepers doubt the importance of this when they offer their client a customised solution based on their needs. However, presenting three distinct price points as a starting point can make a significant difference in attracting and retaining clients. I wanted to take a few minutes of your time to explore the benefits of offering three pricing tiers for your custom bookkeeping services and how this strategy can lead to a more successful and profitable business.
Simplifying the Decision-Making Process
As humans, we find it very difficult to know the intrinsic value of a product or service. We place a value when we compare one product or service to another. While you may be providing fully custom services and quotes, presenting clients with three price points helps simplify their decision-making process. By offering a range of options, you give clients a starting point for understanding the different levels of service they can expect. This approach helps clients feel more comfortable moving forward with your services, knowing they have the flexibility to adjust their needs within a pricing structure.
Catering to Different Budgets and Needs
Every client has unique needs and budgets. Sometimes they'll be clear about these, but often they don't really know what they are until they are presented with options. By offering three price points, you can cater to a broader range of clients with varying financial capabilities. This inclusive approach ensures that potential clients can find a service tier that suits their specific requirements and budget constraints, making your services more accessible and attractive to a diverse clientele.
Encouraging Upgrades and Value Perception
By showcasing three price points, clients can easily compare the features and benefits offered at each level. This comparison can lead to clients choosing a higher-priced tier, as they perceive the added value that comes with the additional services. This can be the case even when the higher levels of service are beyond the budget they originally outlined. Offering multiple pricing options also makes it easier for clients to upgrade their services as their business grows or their needs change.
Establishing Price Anchoring
Price anchoring is a psychological principle where people rely on the first piece of information they receive to make subsequent decisions. By presenting three price points, you can anchor clients to a particular price range, making it easier for them to understand and accept your custom quotes. This strategy helps establish a baseline for pricing and sets client expectations, making it more likely they will agree to one of the price points in your custom quote.
Building Trust and Transparency
Offering three pricing tiers demonstrates transparency and fosters trust between you and your clients. By presenting a clear pricing structure, clients can see that you are upfront about your fees and the services you provide. This transparency helps build trust and can lead to long-lasting business relationships. It can also prevent scope creep whereby a client extends the range of services offered over time without you being compensated fairly for the additional work.
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Presenting three price points for your custom bookkeeping services can seem a bit strange, but it can simplify the decision-making process, cater to different budgets and needs, encourage upgrades and value perception, establish price anchoring, and build trust and transparency with your clients. Adopting this pricing strategy will not only benefit your clients but also contribute to the growth and success of your bookkeeping business.