{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Business Strategy for CPA's","title":"104 How Much Would a CPA Pay for a Kid's Bike?","html":"","width":"100%","height":180,"duration":967,"description":"Today I want to talk to you today about how to price a bicycle. Now you might be wondering, what has this got to do with being a CPA? What does the price of a bike have to do with payroll, cashflow, or tax strategy?  I'll tell you what the connection is.  And I'm going to tell you through a recent experience I had buying a bike for my five-year-old daughter, Hazel.  It was an expensive, but worth it bike. Here are five ways I never thought to justify the price: Component parts: rubber, aluminum, plastic.  Time for the machine to stamp out the bike.  Margins of the bike company.  Goal earnings of the bike company owner. Comparing to prices of other bikes.  Instead, I made the purchase based on the value to me. And that value is being able to watch my daughter have a blast in the pump track with her friends, to feel more confident riding, and to be able to keep up with the boys.   Check her out, getting the hang of the pump track! Here’s the YouTube link:  https://youtu.be/6reW8zJivmM The price of the bike had nothing to do with the cost.    How this connects back to CPAs: they price their services all wrong, all the time.  Here are five examples of how CPAs price their services incorrectly: Hourly. Not so much a price, but more an expression of your confidence. Breaking it down into its component parts like their time, staff time, court time, bookkeeping is this much, payroll is that much.  Destination margins. Shooting for the industry average of 14.9% or above.  Goal earnings. “I need to make $400K so I can cover my desired expenses.” Comparing. They say they are not the most expensive, nor the least expensive CPA in town.  Each of these is something that I've heard a CPA say, and sometimes it's how my own clients can think about pricing when we're starting out. And I get the value of these ways of thinking about pricing. You have to start somewhere.  The problem is the amount of money that CPAs are leaving on the table when they use incorrect pricing...","thumbnail_url":"https://img.transistorcdn.com/AZFvbY29RNsC20PTchqbqXsFoNMjM1040wmYivreg-g/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9lZmE1/ODU2OWRkNzA4ZDQ2/ODg2YmEwYjYzNmEw/NjkzNC5wbmc.webp","thumbnail_width":300,"thumbnail_height":300}