{"href":"http://player.captivate.fm/services/oembed?url=http%3A%2F%2Fplayer.captivate.fm%2Fepisode%2F7d99b9e2-2a52-4cf1-a802-3e17a21ae500","version":"1.0","provider_name":"Captivate.FM","provider_url":"https://www.captivate.fm","width":600,"height":200,"type":"rich","html":"","title":"Value Pricing 2.0 for Accountants with Ron Baker (highlights)","description":"Episode 85. On today's season ending show, we end with a bang as Rob interviews pricing legend Ron Baker about pricing 2.0 for accountants and CPAs.\n\nRonald J. Baker started his CPA career in 1984 with KPMG\u2019s Private Business Advisory Services in San Francisco. Today, he is the founder of VeraSage Institute, the leading think tank dedicated to educating professionals internationally. His radio show Soul of Enterprise with Ed Kless goes out weekly. Ron is also Chief Value Officer at Armanino LLP, the 23rd largest firm in the USA.\n\nRon has been an instructor with the California CPA Education Foundation since 1995 and has authored twenty courses, and seven best-selling books, including: The Firm of the Future, Pricing on Purpose and Implementing Value Pricing.\n\nKey takeaways from the full uncut interview include:\n\n\u27af Customers don\u2019t care about the time you spend doing things, what they are about are the outcomes\n\n\u27af Accountancy is not alone in struggling with the billable hour \u2013 any industry that sells time has challenges with pricing\n\n\u27af The billable hour only looks at inputs, not outcomes, and takes no account of value\n\n\u27af Value was first defined by economists and is the maximum amount a customer is willing to pay for an item\n\n\u27af Value is not a number, it\u2019s a feeling \u2013 accountants have a problem with non-quantifiable things\n\n\u27af When it comes to value pricing, accountants have to be comfortable with ambiguity and psychology\n\n\u27af Accountancy has a relevancy problem \u2013 it\u2019s a deteriorating paradigm that becomes increasingly complex but explains less and less\n\n\u27af If accountants think stock market investors are using their financial statements to make decisions, they are insane \u2013 it\u2019s all too old and historical\n\n\u27af The accountancy profession is stuck in a 100 year old business model of \u2018we sell time\u2019\n\n\u27af With Value Pricing 1.0, pricing and packaging was customised for each client\n\n\u27af The subscription business model is a massive macro economic trend which has a place in the accounting profession\n\n\u27af Value Pricing 2.0 is more focused on not pricing a product or service, but rather the client relationship, transformation and peace of mind\n\n\u27af Throughout commercial history, anytime a business model changes, the pricing strategies change and also the metrics or KPI dashboards\n\n\u27af The growth of \u2018concierge medicine\u2019 in the US is basically selling insurance and peace of mind\n\n\u27af How Porsche are using value pricing 2.0 with subscription models to their vehicles\n\n\u27af Any profession or business can be turned into subscription model like Spotify, Amazon, Netflix or accountancy\n\n\u27af Subscription models for accounting firms create predictable revenue and greater customer loyalty\n\n\u27af We all buy insurance \u2013 it\u2019s a 3.3tn industry, so why not buy accounting services in the same way to get peace of mind?\n\n\u27af Amazon Prime members spend 7x more than non-Prime members \u2013 it was never about free-shipping but \u2018buy everything here\u2019\n\n\u27af New accounting firms have no tolerance for the billable hour \u2013 10 of the top US 100 accounting firms are using value pricing\n\n\u27af Lawyers started timesheets and billable hours in 1919, and there has been little change in 100 years\n\n\u27af How ideas, intellectual capital and knowledge separates the good firms from the great ones, so dynamic learning, innovating firms make great firms\n\n\u27af Think what Amazon (and Facebook) know about you \u2013 knowledge of your clients gives accountants a competitive advantage\n\n\u27af The best accountants or CPAs are always investing in their human capital \u2013 curious and constantly learning\n\n\u27af Why accountants should find a new specialty every 5 years\n\n\u27af Do you want to be led by someone who doesn\u2019t read 50 books a year, because where are they getting their ideas from?\n\n\u27af Why \u2018The End of Accounting\u2019 by Baruch Lev and Feng Gu is a \u2018nuclear bomb and should be debated by the whole accountancy profession\n\n\u27af How Ron Baker went from pro-choice to pro-life on the abortion issue\n\n\u27af We learn more from people we disagree with and those voices...","thumbnail_width":300,"thumbnail_height":300,"thumbnail_url":"https://artwork.captivate.fm/d9a038dd-f784-414c-99f1-2b79571b9f9d/kMYe3iXqQrkbY5eFdNeBv9cK.jpg"}