Frequently Asked Questions
How does this pricing model align interests?
As you may know, minimum billable hours are the client’s best interest, whereas maximum billable hours are the firm’s best interest. This process can create skepticism on the client’s part and worry of an untrustworthy relationship. Our custom service packages do not leave any room for “surprise” billing or services performed. The scope of work is predetermined, thoroughly explained, and mutually agreed upon, ensuring both parties are clear on price.
Does this pricing model put focus on efforts or results?
Blanchard CPA’s hours are inputs, not the output. The output is the solution to our client’s “problem”. Focusing on hours is more like counting the number of swings a batter takes in baseball and ignoring the hits, or lack thereof. This model provides sole focus on results.
Will this model increase or decrease my pricing risk?
You are paying Blanchard CPA to reduce your risk. Billing by the hour transfers this risk back to you, as you may be forced to face surprise billing or having the scope of work that was originally promised stretched to include unforeseen services. With this pricing model, you can trust that price will not fluctuate, and you will be billed according to our agreement.
What are some of the cons of this pricing model?
With hourly billing, work can start almost immediately, since the bill will come later. With our custom service package model, it may take a bit more time to understand each client’s specific needs and create a package that addresses those needs. Therefore, the time it takes to begin the work may be a little longer than the billable hour model, but we are dedicated to making sure our services, and pricing for those services meet the unique needs of each client.
Why aren’t other firms using this model?
Traditional accounting firms believe that price should be a function of the cost of delivery. Accordingly, they use the billable hour, which is an estimate of their internal labor costs marked by their expected profit per hour. This is a deeply entrenched paradigm in the professional services business. Unfortunately, it ignores the economic fact that only the client can determine the value of services received, and the consumer is indifferent to the hours required to provide that value. The client is buying an outcome, not hours.