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Pricing services for long term growth

Everybody loves a deal (including me).  The problem is getting what you bargained for the price you pay.  My wife has hired a number of contractors for odd jobs around the house.  The results have been a mixed bag as many only completed 80% or so of what she wanted in the first place.

That type of situation extends to tax preparation as well.  I noticed an craigslist ad offering tax services for a really great deal.  So low that it's priced like the preparer wants to make mad money.  Mad money in my mind is side money where they already have a regular full time job to provide for their families.

When pricing for a business, you need enough to cover overhead, labor and profit to expand.  The concept doesn't work for building a business when the sales price doesn't allow for all three.  What you have instead is enough work for you only but not enough to hire additional staff.  The concept is the same whether you prepare tax returns for a living or do contracting.  See what I mean?

I am a CPA in San Antonio and provide bookkeeping, payroll, taxes and more.  We offer a free initial visit and look forward to serving your business needs.

Richard J. Garcia | 01/05/2012