I was recently asked what I thought about value pricing as it relates to profes­sional services firms. The billable hour is typically how firms price their engage­ments, but the idea of value pricing is gaining momentum and accep­tance is growing. I believe in a compet­itive market, value pricing would occur naturally. Misin­for­mation from vested interests […]

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It’s all the rage these days on accounting blogs — value-based pricing. You’ll see it every­where, hip accoun­tants (Who’s a hipper accountant than one who blogs? One who blogs about value pricing!) posting missives decrying the historical basis of hourly billing and extolling the virtues of pricing based on value. What value pricing means to them, […]

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There’s a particular blog that only discusses the idea that accounting firms, and indeed all profes­sional services firms, should “trash the timesheet” and implement “value pricing.” The basic concept is sound: Timesheets treat the chargeable hour as the measure of the firm’s services’ value, which distorts its true value to the client and further commoditizes […]

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