I've always found it difficult to provide fixed fee quotations to clients. I've been doing some searching and came across some software that will calculate fix fee prices for jobs. The website is http://www.squosh.co.uk/.
It's not a company I've come across before which always makes me a little apprehensive. Just wondering if anyone here has used the software before?
Any comments gratefully received!
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John
Full Time Book-keeper, Dad of 3 Teenage Girls, Part-Time Taxi Driver :)
Not heard of it before but just reading the gumph on the site (which I wasn't very impressed with the quality of) they shoot themselves in the foot as one of the criteria for setting the price is the quality of the input from the client but you won't know that (well, at least not in detail) until after you've quoted a price as clients always want a ballpark quote up front.... Chicken / egg...
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I know the guy (Mark Allen) behind this product - it is designed for accountants.
I could be wrong but I don't think it got much traction and having studied pricing extensively, I would make the point that there are three pricing models used by bookkeepers/accountants; time bill, fixed and value pricing. In my opinion, time billy and fixed pricing come from the same business model of generating revenue/profit my exchanging time. The only difference is that the client doesn't know the price upfront with time billing, although most clients ask for a ballpark and when you say between X and Y, they only hear X.
However, value pricing introduces the concept of generating revenue/profit from knowledge. And, with this methodology you do not need a calculator/software to work out the price because you don't price the job you price the client. In fact, using software is the opposite of what you should be doing - listening/talking with the client.
I'd recommend you study pricing because you can use this knowledge to improve your practice profitability and you can also help clients with pricing advice.
