Many of us have been taught to believe that the biggest objection we will receive from a prospect is – price. Nothing could be further from the truth!
Price only becomes an issue when the perceived value is not there. Even though actual value is very likely present -- if it is not communicated in a way that the prospect can see it - often price will become the “apparent” reason for failure to close.
Therefore, the focus needs to be on communicating value and not on concern about price. This begs the question – how best to communicate value so that price is a non-issue? Many CPAs launch into the solution they have almost right away – without really exploring the client’s problem fully. This is of course an indication that the CPA really wants to help and while very commendable, unfortunately often does not win the deal. Or if it does win the deal, it is often for a fee lower than is justified by the service.
So the goal is to focus on the problem for 90% of the conversation and the solution would only constitute about 10% of the time spent. What does focusing on the problem consist of? It consists of what we call “fact finding questions” – designed to find out what the issue/main concern is, how extensive it is, i.e. how much it is affecting the prospect and his life right now, and then asking how important it is for the prospect to solve that issue. Getting the prospect to answer these questions is what builds value. Talking almost immediately about what service you offer that will solve the problem, does not unfortunately build value.
Who is in more control of the conversation – the person asking the questions or the person answering them? The person asking the questions, of course. To give you an example of the line of questioning that is very effective – ask why they came to see you? Why now? What have they tried to handle the issue up to now? What hasn’t worked e.g. with their current CPA/tax advisor? Why? What their motivation is in seeking you out and spending precious time with you, is very often skipped over, even though this information is extremely important to building enough value in the prospect’s mind, to justify your fee. The above also applies to increasing fees, as well as to selling additional services to existing clients.
So, as I said, in the title to this article, the reason for a failure to close is almost never price. Often there is an unspoken objection and the CPA never finds out the real reason.
To close, the prospect must have confidence in a) the service and b) the service provider. The prospect won’t say they lack confidence, they’ll be more likely to say they can’t afford it or “haggle” on price. To have confidence, the prospect must feel listened to as regards his concerns, that the CPA understands them sufficiently and can solve them.
Ciara MacMahon
Author Bio: Having worked with accounting practices since 1998, and prior to that working as an attorney in a set-up, very similar to a CPA practice, Ciara MacMahon, CEO of Phase Two Management Consulting, has successfully boosted revenues of accounting practices by 3 – 4X, while allowing the owner to take more time out of the practice. Accounting practice owners are faced with endless deadlines and the challenges of managing workflow, finding the right staff, staff training as well as securing the acquisition of quality new clients! They are also often tasked with the not too pleasant responsibility of imparting bad news regarding taxes due, that the unprepared client is unhappy enough about, to oftentimes ‘shoot the messenger’!
As no two practices are the same and each owner has his own vision for what he/she wants, the first step is a Planning Session to work out the owner’s goals and a strategy to obtain them, in the fastest time period, and for the highest return. To schedule your one on one complimentary practice analysis and consultation, email Ciara MacMahon at consultantciara@gmail.com today. www.PhaseTwoManagement.com