Business Strategy for CPA's

190 Pricing Sweet Spot: Cost < Price < Value


Listen Later

Learn more about PEAK FREEDOM 


What is cost, what is price, what is value?

First let us clarify how these terms can be used and what they mean.

The seller determines the cost, and it is based on the inputs required to produce the service or product. 

The seller determines the price, and it is simply a choice. 

The buyer determines the value, which is unique to each person and highly subjective.

You can think of designing the “equation” like this:

 

Cost < Price < Value

 

So that:

 When the cost is less than the price, the seller sells at a profit. 

(The seller’s profit is the price at which he sold, minus his cost, of course.)

When the price is less than the value, the buyer buys at a profit.

The buyer’s profit is less obvious. It’s the value to them, minus the price. 

The value to the buyer is what they would have paid. 

The buyer’s profit is what they would have paid minus what they paid.

When you design your services such that Cost < Price < Value, you are designing your service to create mutually assured profitability. 

It’s a sweet spot worth seeking.

 

***Want one piece of business strategy delivered daily to your inbox?***

Subscribe here: https://www.shethinksbigcoaching.com/subscribe-main-list

...more
View all episodesView all episodes
Download on the App Store

Business Strategy for CPA'sBy Geraldine Carter

  • 5
  • 5
  • 5
  • 5
  • 5

5

43 ratings


More shows like Business Strategy for CPA's

View all
Accounting Best Practices with Steve Bragg by Steve Bragg

Accounting Best Practices with Steve Bragg

256 Listeners

The EntreLeadership Podcast by Ramsey Network

The EntreLeadership Podcast

4,362 Listeners

Entrepreneurs on Fire by John Lee Dumas of EOFire

Entrepreneurs on Fire

3,839 Listeners

Accountant's Flight Plan by Brannon Poe; Poe Group Advisors

Accountant's Flight Plan

9 Listeners

The Side Hustle Show by Nick Loper of Side Hustle Nation | YAP Media

The Side Hustle Show

1,586 Listeners

Growing Your Firm | Strategies for Accountants, CPA's, Bookkeepers , and Tax Professionals by Jetpack Workflow

Growing Your Firm | Strategies for Accountants, CPA's, Bookkeepers , and Tax Professionals

73 Listeners

Main Street Business by Mark J Kohler and Mat Sorensen

Main Street Business

592 Listeners

Well-Oiled Operations with Stacy Tuschl by Stacy Tuschl

Well-Oiled Operations with Stacy Tuschl

517 Listeners

The Martell Method w/ Dan Martell by Dan Martell

The Martell Method w/ Dan Martell

496 Listeners

The Accounting Podcast by Blake Oliver & David Leary

The Accounting Podcast

338 Listeners

The Perfect RIA by Matthew Jarvis, CFP® & Micah Shilanski, CFP®

The Perfect RIA

454 Listeners

Small Business Tax Savings Podcast by Mike Jesowshek, CPA

Small Business Tax Savings Podcast

250 Listeners

Kitces and Carl - Real Talk for Real Financial Advisors by Michael Kitces, MSFS, MTAX, CFP and Carl Richards, CFP

Kitces and Carl - Real Talk for Real Financial Advisors

239 Listeners

Future Firm Accounting Podcast by Ryan Lazanis

Future Firm Accounting Podcast

24 Listeners

Jason On Firms Podcast by Jason Staats

Jason On Firms Podcast

54 Listeners