• Tanya Hilts

Value Pricing Tax Services

Value pricing your tax services. This was the topic of a conversation that I had with Ron Baker during one of my one on one calls as part of the Black Swan mentor-ship program. I really didn't think it was possible. I mean, everything was menu priced as it always had been and I couldn't see any other way. After the conversation, and looking at one of the earlier Black Swan's sample pricing packages, it was like a light bulb went off.

Just like with the bookkeeping plans, it is all about choice. You strip away services to lower the price, and add services to increase the price. And of course, don't forget about giving the client the choice. The only difference is that you don't price the customer. In my humble opinion, that would be way too difficult with tax services. I realized that I was giving away a lot of services for free that were cutting into my time. Things like the pre and post assessment reviews, pulling off copies of NOA's that clients request, checking the tax slips against on file with CRA, and all of those follow up questions for clients that require me to either call CRA or look it up online such as where is my refund, when can I expect my CTB, OTB etc. I began to realize that items I started doing as additional favors, were quickly taking up more and more time. Time that I either can't work on another clients file, or that I have to pay someone to do the work for me. I took care of all of these queries, without compensation.

So how did I accomplish this? Simple, strip those extra items away from my basic tax price and price them both a la carte and package them together. If a client wants to handle all CRA contact themselves, they can purchase a basic return. Of course, the returns are still priced based on the type of return. Items such as rental expenses, business / self employment expenses, deductions, investments, more deductions etc. will all still be priced differently, but there will be different packages that will include some of the CRA follow up, and the highest will include all CRA follow up. Just like with insurance, the clients can purchase the packages with that included so they know that it is all taken care of. Those that don't see the value in that, can of course purchase the basic package and should they require CRA follow up, can either take care of it themselves, or purchase the a la carte service at the time it is required.

I have my packages set and am ready to have the conversation with the clients regarding the new pricing structures this year. If you want to see how I have set this up, I will be running a free webinar on this topic. See webinar dates and sign up for this free webinar on my website

As always,

Happy Value Pricing,