Pricing Incentives Matter
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Pricing for Improved Profitability
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If a tax return was priced by the…
…ounce, one could be incentivized to find ways to make that return weigh more. Insert “this page intentionally left blank” pages, use heavier paper stock…
…page count, one could be incentivized to find ways to make that return longer. Larger font, narrower margins…
…thickness, one could be incentivized to find ways to thicken the return. Thicker stock, smaller sized paper, or print on one side only…
…hour, one could be incentivized to find ways to make it take longer. Maintain inefficient systems, use outdated, slow software, avoid training staff, let the phone ring to interrupt your train of thought, allow walk-ins to drop off stuff and bog your staff down with excessive small talk, hold client meetings without an agenda, enable notification noises to distract you….
Pricing incentives have an impact.
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