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Pricing and why increasing them is so important!

I was reading a Facebook Group post from a fellow accountant. He was dreading this week as in his mind he had some “difficult conversations” around prices and price increases. 

In my experience pricing is an area most business owners struggle with,  especially around mindset and getting it done.  The accountant in this group was given some really good advice on how to frame his thinking and see it from a positive viewpoint.

It got me thinking, I had a quarterly coaching session with a client recently who was in a similar position.  They know that they provide a really fab and valuable service to their customers, but for whatever reason dread having a conversation around pricing.  Why is this? 

Well in truth most people dread putting up their prices as they have a fear that their customers will leave.  In reality this is just not true, whilst some will always be price conscious the vast majority of our customers do not buy on price or price alone, if we are honest. 

Most of us operate in a sector for our products or services where there is lots of competition so it can’t just be about price…….. you only have to look at the car industry to appreciate that.   

It must be one of the most regular conversations I have with clients and I’m usually met with cries of “they will go elsewhere“I’ll price myself out of the market” “I can’t put my prices up I will lose all my customers”. 

In 99% of cases this just isn’t true unless you are in a commoditised industry.  They can’t get the exact same product or service from someone else, there will always be differences, whether it’s the customer service, the product itself, the way it’s delivered, the way you make them feel will all add to the overall experience and influence the buying decision.  After all, you can’t fail to have heard the saying……”People buy people”.

I have a tool that shows you what happens to your profit if you put your prices up – (Hint it goes up 😊  you may lose a few customers but you will still be in a better position in terms of profit and time).  If you’d like a copy please email [email protected] and we’ll whizz a copy across.

What I’d like to share is how collectively we helped the fellow accountant at the beginning of this article as I think it may help you when you find yourself about to have “a difficult conversation”.

You see, It’s all about mindset…….how you think about things.  Be very wary about the words you use as they control 2 things:

  • Your focus
  • Your state of mind

So, if you use the word difficult you will focus on everything that is difficult, you will expect it, be waiting for it and get more of it because everything you focus on you get more of! 

Also you will definitely not look forward to these “conversations” horrendous!!!  So, reframe it to a re-alignment/recalibration conversation for example, or better still a growth conversation – it needs to energise you! 

If you think of pricing as a growth conversation because it will enable you to grow your revenue, or it will allow you to grow your customer’s understanding of the value your product or service brings.  Or, they will move on which will allow you to grow in other ways, and grow/bring on other customers so which ever way you look at it, it is a growth outcome! How much more exciting is that than a difficult conversation!

So be very mindful of the words you use!!!  As that will affect your mood and outcome!!!  Remember what you FOCUS on you will get more of.

Have a great day!

If you’d like some support when it comes to pricing call us on  0161 410 0020 or email [email protected] for a free no obligation chat.

Remember “Not all Accountants are the same”.

It is important that you take professional advice before making any decisions based on the information that you learnt here. While every effort has been made to make sure it is accurate it cannot be precisely tailored to your personal circumstances. This article is for general information only and no action should be taken, or refrained from, as a result of this information.  Professional advice should be taken based on specific circumstances in each individual case.  Whilst we endeavour to ensure that the information contained in the article is correct, no liability  will be accepted by Krystal Clear Accounting which is a trading name of Kim Marlor Associates Ltd or damages of any kind arising from the contents of this communication, or for any action, inaction  or decision taken as a result of using any such information.

What are Bank Feeds and how do they work?

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In short, bank feeds create a digital link between your business bank account and your accounting software, such as Xero or QuickBooks.  

This means bank transactions are automatically downloaded into the accounting software. This simple piece of automation, completely removes the need to manually input every bank receipt and payment into the accounting software. 

Having bank feeds in place, saves a HUGE amount of time bookkeeping. That’s because it completely removes the need to manually input bank transactions into the accounting software. 

Saving time bookkeeping isn’t the only benefit for the business…. 

 

 

Keep your thoughts on pricing positive

What are the main benefits to a business using bank feeds?

Bank feeds automate, what was previously, a time-consuming task of entering all the bank transactions into the accounting software. 

 This saves the business a HUGE amount of time (& money) spent on bookkeeping.  

With bank transactions being downloaded from the bank every day, it means it’s quicker and easier to keep the bank balance in the accounting software up-to date. 

With the accounting software up-to date, the bank is updated daily which gives you a clearer, real-time view of your business’s cash flow.  

This makes it easier for you to plan your cashflow, and take action to improve it. 

There is always the risk of errors being made when data is being manually inputted into the accounting system. It is often time-consuming to find and correct any errors. Also, if an error is large then the Profit & loss and Balance Sheet reports will be inaccurate and potentially misleading. 

 Automating the bank transaction entry previously manual process, reduces the risk of errors being made and ensures that the bookkeeping records and reports are accurate. 

How to Link Your Bank to Xero

Ensure that your bank account is set up for online banking. This feature is typically available from all major banks. 

Log into your Xero account and navigate to the banking section. Select ‘Add Bank Account’ and follow the prompts to search for your bank. 

After adding your bank account details, you’ll see an option to set up bank feeds. Click ‘Agree’ to the terms, then securely log into your online banking portal through Xero to authorize the connection. 

 

Are Bank Feeds Safe & Secure?

Yes. 

Firstly, having bank feeds in place ONLY means bank transactions are downloaded into the accounting system. They do NOT give anyone else access to the business bank account. 

 Secondly, XERO has various security measures in place to give you a piece of mind that your financial data is safe and secure: 

 

  • Encrypted Connections: Xero uses advanced encryption technology to secure the data transmission from your bank to Xero. This means your sensitive information is encrypted during transit and cannot be intercepted or read by unauthorized parties. 

 

  • Compliance and Standards: Xero adheres to high standards of data security compliance, thus ensuring that its practices meet or exceed industry security standards and regulations. 

 

  • Regular Renewals: To maintain a high level of security, XERO requires that the bank feed connection is renewed every 90 days. This process is straightforward and helps ensure that the integrity of your financial data is always protected. 

 

people are connected
KIm Marlor the MD of Krystal Clear Accounting
krystal clear accounting

In Summary

In short, having bank feeds really saves businesses time and money on their bookkeeping.  

 They automate and eliminate what is otherwise a time consuming and error prone manual process.  

 Bank feeds is just one of the ways technology can be used to help business owners improve the financial side of their business.

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