For the first time in my firms history (since opening in 2006) we are finally adding a minimum price. This will more then DOUBLE prices for some of the bottom unprofitable clients, and we are also requiring they do the entire appointment fully online. We can loose 37.13% people in this cohort and still make the same amount of money, and this total cohort makes up only 20%~ of our revenue giving me the confidence to do this. This pod has subdewed my doubts for the time being. We will see in Jan how i feel xD
I’m working through this within my own firm and have culled the large head count- low fee group of clients already. But I’d love it if you could address how to make that transition profitable as quickly as possible. Our teething pains in making transition from mostly tax to way more cas & advisory is that we’re setting up the SOP‘s, apps, workflow as we go. Which means at the moment the margins are significantly lower, and it’s hard to hold my nerve!
This was my experience as well. Launching the CAS firm the margins were 10% or less the first 18 mos. By the time I left the firm, margins were 40-45% after the year 4 renewals Will share some more context in the next Q&A
This is absolutely wonderful! Great perspective.
These maths! I watch your old pricing video at least once a year and I'm now going to have to add this one to the repeat list.
👏
For the first time in my firms history (since opening in 2006) we are finally adding a minimum price. This will more then DOUBLE prices for some of the bottom unprofitable clients, and we are also requiring they do the entire appointment fully online. We can loose 37.13% people in this cohort and still make the same amount of money, and this total cohort makes up only 20%~ of our revenue giving me the confidence to do this. This pod has subdewed my doubts for the time being. We will see in Jan how i feel xD
CONSIDER YOURSELVES SUBDEWED, DOUBTS
I’m working through this within my own firm and have culled the large head count- low fee group of clients already.
But I’d love it if you could address how to make that transition profitable as quickly as possible. Our teething pains in making transition from mostly tax to way more cas & advisory is that we’re setting up the SOP‘s, apps, workflow as we go. Which means at the moment the margins are significantly lower, and it’s hard to hold my nerve!
This was my experience as well. Launching the CAS firm the margins were 10% or less the first 18 mos. By the time I left the firm, margins were 40-45% after the year 4 renewals
Will share some more context in the next Q&A
This daily podcast has become therapy for me tbh.
Maybe put me above C tier next time then
@JasonOnFirmsPodcast deep cut
Gonna start calling numbers "nummies" from now on. lol
Does anyone know if the Karbon marketplace is active yet !? I signed up for it a few months ago but wasn’t sure. Awesome video as always Jason !
Stay tuned! I'm launching an accounting firm marketplace soon that will allow you to filter by tech stack!