If you are a CPA in Ohio, I hope you have alredy read my article in the June issue of the Ohio Society magazine, Voice. If you haven't or if you are not in Ohio, I hope you will take a few minutes to read the story. You can read it via their digital copy, the article is on Page 14-15 - A Journey to Value Pricing.
When I first talked with Linda Sheridan, CPA and Managing Principal of Snyder & Company, a Lancaster, Ohio CPA firm, I was surprised to learn the firm did not track time nor bill by the hour. Sheridan explained that the firm and all team members have fully embraced value pricing. My surprise turned to delight because Snyder & Company would be my first client not tracking time nor billing by the time recorded for the engagement.
While I was familiar with value pricing and actually use it in my own practice, I had not previously worked with a multi-partner CPA firm that used value pricing and I learned much from Snyder & Company.
Sheridan gives credit to her partner Vic Christopher for bringing the idea to the firm and playing a huge roll in making it all happen (along with the rest of the future-focused team, of course).
Curious about value pricing? Read their story and be inspired.
"What is a cynic? A man who knows the price of everything and the value of nothing." - - Oscar Wilde
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We need more of this!
Great job on the article Rita and also for encouraging your peers to go down this path. Xero are big fans of the Value Pricing approach and I personally carry a copy of Ron's book Firm of the Future with me everywhere (which is very inconvenient as it's a bit too big for my normal laptop bag...maybe time to upgrade to the e-book). One of the challenges to adopting this model that we hear from some firms is a fear that committing to a price upfront can be risky. One way we're seeing this mindset change is by introducing productivity improvements (through technology funnily enough) that guarantee less time is spent on the lower value component of jobs - such as compiling the client data and running reports. What other mechanisms are you seeing Value Pricing firms adopt to guarantee they come in on budget?