Losing clients? Downward pressure on fees?

If there is one result that practitioners desire it is winning a new client. There is nothing quite like the buzz and excitement that new business brings.

At the other end of the scale, there is nothing more depressing than losing a client.

Fall-out from COVID disruption

Many firms we have spoken to in the past few weeks have reported client losses. A number of these client losses are due to lock-down. Government support has proved inadequate and business owners have decided they have had enough and pulled the plug.

There are also a growing number of practices that are receiving requests to reduce their fees. This is doubly concerning. Clients are obviously counting the pennies and if they perceive that what you provide can be obtained at a lower price, they will switch.

There is no mileage in agreeing to these requests to drop fees as you will no doubt find yourself in a downward spiral. Clients will habitually request a fee reduction.

What’s in it for you?

If you crack this nut, if you wrap your services so the perceived value is more than a set of basic tasks, then you will be in much better position to avoid messy fee-reduction conversations with clients. The value wrapper will also make your services more appealing to prospects.

There are no downsides to this process.

What to do?

If the majority of your practice income comes from basic compliance work you may struggle to retain clients or resist requests to reduce fees.

Why is this?

The only way you can justify the fees you charge – perhaps higher fees than your competitors –  is if clients associate the work you do for them with value rather than just price considerations. Value demands its own price and is therefore more resistant to price challenges.

Consequently, the solution, the what to do, is simple. You HAVE to find ways to increase the value of the work you undertake for clients and make sure they appreciate these changes.

Short of ideas? Short of time?

Would you speculate £55 a month if this investment provided you with at least one idea a month to achieve this goal; to start offering services that have more impact, more value?

And what if you could kick-off the process each month by testing out each idea in just 10 minutes?

What have you got to lose? Take a look at our Fee Builder program. You can trial the service for a month and we will take all the risks, no fees to pay for 30 days, you can cancel your participation at any time.

The dinosaurs reputedly became extinct because they didn’t adapt to changing conditions. Don’t join the fossil record, challenges create opportunities. Join our Fee Builder program now to find out how.

 

Bob Edwards

Bob has been working with practices across the UK offering novel ways to improve cross-sales and increase new client acquisitions. He is also interested in "step changes" in legislation that offer challenges, and therefore opportunities, for practitioners to provide new recurring and one-off support services to clients.

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