How to Let Go of Guilt and Get Paid | Pure Bookkeeping

In the first few years of growing my bookkeeping business I was undercharging. When I started working with Peter Cook we had a meeting each year to agree on how much I was going to increase my prices from July 1^st. It was agonizing. For a number of years I had to put up my prices $10 an hour. I was afraid some clients might leave and, for those who chose to stay, I was worried they just couldn’t afford the rate and I felt sorry for them.

Pete helped me understand my value proposition. I began to realize I wasn’t “just a bookkeeper”, I was empowering clients around their finances. I was an integral part of their team, giving them reliable information which would help their business grow. That realization gave me the courage I needed. The interesting thing was that I didn’t lose one client. All that agonizing for nothing!

I’ve spoken to several bookkeepers recently who were charging less than the Australian average (currently $48 per hour ex GST). I explained that it was impossible to grow a profitable bookkeeping business at that rate because they would struggle to attract great bookkeepers. The issue of undercharging is common in the bookkeeping industry.

If you’re not charging in the top quartile (i.e. more than $65 per hour) then July 1^st is the perfect time to put up your prices:

• Work out what clients you can afford to lose
• Send out an email outlining the reasons for the price increase (increased costs, etc) and the benefits of your services
• Have marketing strategies in place to compensate for any lost clients

And if you’re a PB licensee, then use the draft letter that’s included in the PBS/Admin Templates/03 Finance to advise your clients of the increase.

If you have the courage to take this step, you'll soon see the rewards.