Is this a sound pricing structure for going from 20k to 150k?

Evaluating My Pricing Strategy: From $20k to $150k in Revenue

I run a solo full-charge Bookkeeping service and often collaborate with CPAs throughout the year. My goal is to streamline their operations with meticulously maintained financial records—let’s just say, if you know, you know 😂.

Having earned $20,000 last year, I’m now aiming to crack the six-figure mark. As a 20-year-old college student at WGU, I’m confident this is a worthy target for my age.

I’d love to hear from seasoned Bookkeeping firm owners. I’m refining my email campaign targeting and am curious about the types of companies that can afford my service range. I offer customized full-charge Bookkeeping. Depending on client needs, this could range from strategic consultations to detailed bookkeeping tasks such as inventory management and forecasting optimal restock times.

Here’s my pricing rationale: hiring an in-house bookkeeper brings significant operational overhead, including a $45k+ yearly salary. In contrast, I’m fully dedicated to bookkeeping, offering reliable service without sick days or other disruptions.

Proposed Pricing Packages:

  • Basic Package: $900/month ($10,800/year) for straightforward bookkeeping.
  • Middle Tier Package: $1,500/month ($18,000/year), including payroll services and comprehensive financial reports with graphs and tables.
  • Premium Package: $2,500/month ($30,000/year) offering tax services, strategic planning, and CPA collaboration.

Businesses with multiple locations can add-on services for an additional $500 per location on the lowest tier.

For established professionals, does this pricing strategy make sense? I have the capacity for about 8-14 clients and reaching the six-figure income mark is my goal. Is this approach more effective than managing multiple virtual assistants and aiming for numerous $500/month clients?

Currently, some of my clients pay $6,000 annually, but I’m committed to expanding my practice into a sustainable business. Any advice or insights would be greatly appreciated!

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One response

  1. It seems like you’re on the right track with your pricing structure and strategy, especially considering your goals and constraints. Here’s a breakdown and some advice on your current plan:

    Current Pricing Structure

    You’ve laid out a tiered pricing model:

    1. Basic Package: $900/month ($10,800/year)
    2. Focuses solely on Bookkeeping for clients with simpler needs.

    3. Middle Tier Package: $1,500/month ($18,000/year)

    4. Includes Bookkeeping, payroll, and in-depth financial reports. This provides added value for clients who require more insights from their financial data.

    5. Premium Package: $2,500/month ($30,000/year)

    6. Offers comprehensive services including tax planning and strategic financial planning in conjunction with their CPA.

    Considerations for Pricing

    • Market Analysis: Identify the industries and company sizes that typically require these services. Small to medium-sized enterprises (SMEs), retail businesses with inventory needs, and companies with multiple locations are great targets. Businesses of these types often can’t justify a full-time bookkeeper but need more than sporadic Accounting attention.

    • Value Proposition: Your value proposition focuses on the expertise and reliability of outsourced Bookkeeping versus the cost and management overhead involved with in-house staff. Emphasize the strategic advantages, such as real-time data, financial forecasting, and seamless CPA collaboration.

    • Operational Capacity: You’ve mentioned you can handle 8-14 clients. This means you’re targeting an average client revenue between $900 to $2,500 monthly, which is manageable and aligns with your six-figure income goal. Ensure your service quality remains high as you scale, which might include developing streamlined processes or using bookkeeping software to boost efficiency.

    Strategies for Growth

    • Targeted Marketing: Develop email campaigns that speak directly to the pain points of your ideal clients — efficiency, cost savings compared to hiring a full-time bookkeeper, and the strategic insights they’ll gain. Leverage testimonials and case studies from existing clients to build credibility.

    • Expand Client Base: Consider reaching out to specific niches that can benefit greatly from your services, such as startups needing structured bookkeeping to attract investors, or franchises looking to manage multi-location finances efficiently.

    • Leverage Technology: Utilize bookkeeping software and financial dashboards that can automate some tasks, provide enhanced insights, and enable clients to access real-time data. This not only adds value but can also help you

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