Why do clients choose an accountant? Or a marketing company? And why reducing prices is a bad idea.
I’m reading a great book at the moment – Grow Your Service Firm by Robert Craven. The book refers to a survey undertaken by the Rockefeller Corporation on the factors that affect the choice of an accountant. I think the same factors would apply to the choice of any professional advisor – a marketing consultant, a solicitor, a financial advisor, etc. The key factors were interpersonal skills, interest in the client, willingness and perceived honesty amongst others. The one factor missing from the list was PRICE. And the reason most people gave for leaving an accountant was that they felt a lack of interest in them and their business. This is so true. I’ve had the same experience myself and it took me several years to find an accountant with a genuine interest in my business and who saved me more than he cost.
Why, knowing that price is so low on the priority list if it even appears at all, do businesses insist on selling on price? As Mr Craven says, “The road to bankruptcy is paved with people who tried to buy market share by cutting prices.” Better to be “reassuringly expensive” than to commit financial suicide by selling your valuable skills for less than they are worth. I would rather lose a sale on the grounds of being too expensive than because of the quality of our work. Whilst maintaining price integrity is difficult in a challenging climate, it is a slippery slope once you start to buy work in.
Finally, if your business were a car, what type would it be? Just one of the questions posed by this book – one of the best I’ve read for a long time. The premium car marques are apparently doing rather well at the moment.
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