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How to Discover Local Bookkeeping Rates
Pricing is a frequent topic of discussion in our industry. When I ventured into freelancing over a year ago, determining my rates felt like navigating in the dark. Despite having extensive experience, my background was so different that I had little idea of how much local small businesses typically pay for Bookkeeping services. Quickly, I found my schedule fully booked, revealing that my prices might be too low.
I’m still uncertain about what my rates should be. Recently, someone online asked if I knew how my prices compared to local competitors—truthfully, I don’t. My only benchmark is the fees my current clients were charged by their former bookkeepers. So, how do you research the going rates in your area? I’ve read that Bookkeeping and Accounting fees can vary greatly, from $40 per hour to $200 per hour, influenced by numerous factors. However, I’m keen to understand the local landscape more accurately. Unfortunately, local sites I’ve checked don’t display any pricing information.
Do you have any suggestions on how to uncover local pricing trends?
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One response
Setting the right price for your Bookkeeping services can be challenging, especially when entering a competitive market without prior local pricing benchmarks. Understanding your position relative to the competition is crucial for maintaining a sustainable business model. Here are several strategies to help you find local Bookkeeping prices:
1. Networking with Peers
Join Local Business Groups: Participate in local business networks such as the Chamber of Commerce or industry-specific Accounting associations. Attend their meetings and events to mingle with peers who might share insights about pricing.
Online Forums and Social Media Groups: Platforms like LinkedIn, Facebook groups, and Reddit forums for Bookkeeping and Accounting professionals can provide anecdotal evidence of local pricing trends.
2. Competitor Research
Mystery Shopping: Contact local bookkeeping firms as a prospective client to inquire about their services and pricing. This direct approach can be revealing, although it may require some discretion.
Analyze Competitor Websites: Even if pricing isn’t directly listed, you can glean useful information about competitors from what they emphasize or the scope of services they offer, which you can compare to services priced on various online bookkeeping sites.
3. Market Surveys
Conduct a Survey: Create a simple survey and distribute it to local small businesses or Accounting forums. You can ask about the rates they are currently paying for bookkeeping services.
Hire a Market Researcher: Depending on your budget, hiring a professional to conduct a market pricing study can be a solid investment for more accurate data.
4. Leverage Current Client Insights
5. Internet Research and Online Platforms
National Averages: Websites like Salary.com, Glassdoor, or Payscale might provide salary data for bookkeepers, including regional variations.
Freelance Platforms: Sites like Upwork or Fiverr allow you to see what other bookkeepers are charging, giving you a range, though remember these rates may be affected by the platform’s global nature.
6. Consider Additional Value Factors
Experience & Credentials: Reflect on your experience and any certifications you hold compared to your competition. Higher expertise can justify higher rates.
Specialized Services: If you offer specialized services, such as handling tax preparation or software consultation (e.g