Many bookkeepers struggle with pricing their services. They know the value they bring to their clients but often hesitate to charge what they deserve. This leads to long hours, financial stress, and a business that feels more like a job than a profitable venture.
In an episode of The Successful Bookkeeper Podcast, pricing expert Mark Wickersham shared practical strategies to help bookkeepers shift their pricing mindset and boost their earnings. Here are key takeaways from the interview:
1. Stop Charging by the Hour—Focus on Value Instead
Hourly rates limit your income. No matter how efficient you become, there’s a cap on what you can earn. Plus, clients don’t pay for your time—they pay for the outcomes you deliver.
Why hourly billing doesn’t work:
- Makes you easy to compare to employee wages, which lowers perceived value.
- Penalizes efficiency—faster work means less income.
- Leads to unpredictable invoices that clients dislike.
✅ Solution: Value-Based Pricing
Price your services based on the results you provide. If your expertise prevents tax penalties, improves cash flow, or frees up your client’s time, that’s worth more than just “X hours of work."
2. Offer Tiered Pricing—Give Clients Options
Mark Wickersham recommends using menu pricing to boost your confidence and revenue. By offering three pricing tiers, clients can choose a package that fits their needs while seeing the added value of premium services.
Example Pricing Model:
- Basic Package: Essential compliance-based bookkeeping.
- Standard Package: Additional reporting and support.
- Premium Package: Financial insights, priority service, and consulting.
Most clients choose the middle option, increasing your average revenue with no extra effort. It also prevents clients from walking away because they feel stuck with a “take-it-or-leave-it” offer.
3. Lead with Value, Not Price
Clients push back on pricing when they don’t understand the benefits they’re receiving. Focus on outcomes, not just the cost.
Instead of:
“I charge $300/month for bookkeeping.”
Try:
“With my bookkeeping services, you’ll have a clear financial picture, avoid costly mistakes, and save hours every month. Most businesses like yours invest about $300/month to gain these benefits.”
Positioning your services as an investment rather than an expense makes pricing easier to accept.
4. Start High and Adjust if Needed
Fear of losing clients leads many bookkeepers to undercharge. If clients never push back on your prices, you’re probably charging too little.
Simple Pricing Strategy:
- Start with your highest-priced package.
- If the client hesitates, remove optional services rather than lowering your rate.
- Let clients decide what’s essential—many will keep more services than expected.
This ensures you maximize revenue while still accommodating different budgets.
5. Build Confidence in Your Pricing
Pricing isn’t just about numbers—it’s about mindset. Undercharging leads to burnout and financial strain, while charging what you’re worth builds a more sustainable business.
How to Boost Your Confidence:
- Learn proven pricing strategies from experts like Mark Wickersham.
- Test new pricing models with new clients first.
- Focus on the value you deliver, not just the services you provide.
The right clients will pay for quality, expertise, and peace of mind.
Final Thought
By shifting your pricing mindset, offering clear choices, and focusing on value, you can break free from undercharging and start earning what you deserve. Don’t let fear hold you back—your skills and expertise are worth it.
For more great content, check out The Successful Bookkeeper Podcast!
