Pricing is often one of the most challenging aspects of running an accounting firm. Getting it right can mean the difference between a profitable, scalable business and one that’s struggling to keep the lights on. Stuart Hurst, the founder of Cloud 10 Accounting, knows this better than most. Speaking at the recent Elevate Summit, Stuart shared his journey of tackling pricing—warts and all—and how his experience has helped him build a thriving firm.
Here, we’ll dive into Stuart’s key insights on pricing, offering valuable lessons for other accountants and firm owners who are looking to improve their profitability without sacrificing service quality.
Why pricing matters for firms of all sizes
For many accountants, pricing can feel like an uncomfortable subject. Stuart addressed this head-on during his talk, noting that while many in the industry shy away from pricing conversations, it’s a critical component of any successful firm. “Pricing and marketing are the two most important parts of any business, never mind an accountancy firm,” Stuart remarked. Whether you’re starting fresh or dealing with legacy clients, pricing strategies can dictate the direction of your business.
Key takeaway #1: Start tough conversations early
One of the major themes in Stuart’s story was the need for tough conversations with clients—especially when repricing. He shared an experience of repricing clients at his old firm, where legacy pricing had left them struggling. The process wasn’t easy, but it was essential for the survival of the business.
“We went through a three-month bloodbath,” Stuart said, referring to the painstaking process of reviewing and adjusting client fees. The result? They lost about 150 clients but increased their monthly recurring revenue by £10,000 and brought in an additional £20,000 in one-off fees.
The key lesson here is that difficult conversations about pricing shouldn’t be avoided. Instead, they need to be approached with confidence and a clear understanding of the value you provide. “If you can’t have those tough conversations, this might not be the place for you,” Stuart warned, emphasising that this skill is vital for long-term success.
Key takeaway #2: Tailor your approach for every client
Stuart stressed the importance of a structured but flexible approach when it comes to pricing. “There’s help to give people that crutch and support,” he said, describing how his firm implements standardised pricing meetings with a clear agenda. However, the key to success isn’t just in the structure; it’s in tailoring the conversation to each client.
Stuart’s approach to pricing revolves around asking the right questions to uncover the client’s true needs and pain points. He likened it to the famous “sell me this pen” example from The Wolf of Wall Street. Instead of pitching features, he teaches his team to dig deeper into the client’s business, asking questions like, “What are your goals? What’s been working for you? What’s your biggest challenge?”
By taking the time to understand the client’s specific needs, Stuart’s team can offer a more customised service and justify the value behind their fees. This approach not only helps to strengthen the client relationship but also makes it easier to upsell additional services when necessary.
Key takeaway #3: Keep reviewing and communicating value
One of the most valuable strategies Stuart shared was the importance of regular fee reviews. He mentioned that his team reviews pricing with clients every quarter, even if the fee doesn’t change. “It’s crucial to tell them whether you’ve reviewed their fee and it hasn’t changed,” he explained. This ensures that clients are aware of the work you’re doing behind the scenes and reinforces the idea that value doesn’t always come with a price increase.
Moreover, Stuart keeps a “value register” for every client. This document lists out all the ways his firm has added value to their business, from tax savings to business growth strategies. For example, he highlighted how simple dividend planning could save a client thousands in tax, but many accountants don’t make a point of showing the client how much they’ve saved. “Keeping a value register just keeps that front of mind,” Stuart said, making sure clients are always aware of the return they’re getting on their investment.
Bringing it all together: Getting pricing right at all costs
Stuart’s journey is a testament to the power of getting pricing right, even if it means having difficult conversations or losing clients along the way. By sticking to a structured approach, tailoring conversations to individual clients, and consistently reviewing and communicating value, he’s been able to build a firm that not only survives but thrives.
His experience also underscores a crucial truth for accounting firms: pricing isn’t just about covering your costs. It’s about building trust with your clients, ensuring you’re compensated fairly for the value you provide, and creating a sustainable business model that supports growth.
Watch the full recordings from the Elevate Summit
Stuart’s story offers valuable lessons for any firm owner or accountant looking to improve their pricing strategy. To hear more insights from him and other industry experts, check out the full recordings from the Elevate Summit. You won’t want to miss the practical advice and real-world examples that can help you take your practice to the next level.