Mastering price optimisation: how XBert’s AI-powered practice management drives your pricing strategy
Getting your pricing strategy right in the crowded accounting marketplace is an artform. So much of what you charge out is based around the subjective value you offer and the actual time spent on pieces of client work. But there are ways to get a handle on price optimisation.
Understanding your workflows, utilisation and client-based time in forensic detail gives you the foundations for a pricing strategy that’s targeted, agile and competitive. And XBert’s AI-powered practice management platform helps you dive deeper into this job-based data.
So, how do XBert’s AI tools help you drive both efficiency and an optimal pricing strategy?
Key strategies for optimising the firm’s pricing
How much are your firm’s services worth? It’s an important question for any accounting firm to ask, especially given the variety of services you’re probably offering to your clients.
A monthly fee for a bookkeeping client will be very different to the fee for engaging in high-level strategic advice. So, how do you measure the worth of your fees and optimise your prices to drive the best revenues and end profits for the firm?
Here are five common pricing approaches to think about:
- Price based on added value – one option is to base your fee around the unique benefits your firm offers to each client. In this way, you can align your pricing with the perceived value to the client and long-term advantages for their business.
- Segment your client base into pricing silos – client segments help you create price packages for clients that share common engagements. Each segment can be linked to a standard fee, with bundled services that cater to various needs and budgets.
- Offer packages with tiered pricing – a common option is to offer a three-tier pricing model that translates to a gold, silver and bronze price point. Clients choose the service package they need and you get a recurring inclusive fee to charge each month.
- Discounting your prices to attract and retain clients – a good way to mix up your pricing to offer discounts and promotions for new and existing clients. This could be a discounted fee for any new clients that sign up in a given month, or it might be a reduction in fees for an established client that refers a new business to the firm.
- Use data to adapt and refine your pricing – the scope and the amount of work required on each client job can evolve over time. With access to detailed data analytics, you can track trends, adjust pricing strategies and ensure you’re remaining competitive.
How XBert helps you make pricing decisions
The pricing strategy you choose has to be a good fit for the firm and for your clients. But the way to optimise and boost the profitability of your prices is to keep them agile.
XBert’s AI-powered practice management platform helps you drive that agility, by helping you make data-driven decisions and access clear reporting on every client job.
Using XBert, you can review, refine and update your price point for each job, based on the data data analysis of the engagement. How much time is being spent on the job compared to 6 months ago? Are you utilising staff with higher charge-out rates to get the job over the line? XBerts AI powered analytics and business information gives you this data, allowing you to make data-driven decisions about when the price is right, and when the price needs to change.
When it comes to optimising your pricing on a client-by-client basis, there are a number of ways that XBert can help you make informed pricing decisions:
- Data analysis and insights – XBert uses artificial intelligence (AI) to analyse the financial data for each client, looking for patterns, anomalies and trends. With this information at your fingertips, you have a deeper understanding of each client's financial health and business viability, which is crucial for setting the best price point.
- Client segmentation – XBert can categorise your clients based on their financial behaviours, transaction history and business characteristics. By grouping clients in specific segments, you can tailor your pricing strategies to each different client segment, and make sure your services align with their specific needs and budget constraints.
- Profitability assessment – by referring to your utilisation and job time estimate budget data, XBert can help you evaluate the profitability of each client engagement. If you’re using high-cost staff to meet the job deadline, you can make informed decisions about adjusting the pricing to deliver a more appropriate profit margin on the engagement.
- Customised pricing recommendations – based on the insights pulled out of your XBert data analysis, you can quickly highlight opportunities for pricing adjustments on a client-by-client basis. These recommendations take into account factors like service utilisation, growth potential and market benchmarks for client fees.
- Tracking performance metrics – XBert can track key financial metrics linked to each client's financial health. By looking at metrics for revenue growth, expense trends and cashflow patterns you can get a better handle on the impact of making pricing changes and how this would affect the client’s budget.
- Collaboration and communication – XBert’s client portal makes it easy for you and your clients to collaborate, share data visualisations and run through financial reports. This makes the advisory process far more transparent and helps clients understand the rationale behind any pricing adjustments, based on the extra value you offer.
XBert: driving efficiency and understanding of your client base
Putting XBert’s AI-powered practice management at the heart of your firm is a game-changer. Now you can optimise your pricing, based on high-quality data and client metrics. Our data-driven insights, advanced analytics and AI-driven recommendations, help you drive the best prices and margins on a client-by-client basis.
XBert is the AI heart of your practice, bringing you:
- Smart AI automation of your data checking
- Automation of your workflows
- Deep insights from our BI analytics
- A dedicated client portal
Futurise your firm with XBert and get paid for the added value you deliver.