How Much Can You Charge for Benchmarking Services?
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Benchmarking has become a core strategy for businesses aiming to refine their strategies and stay ahead of the competition. For accountants, offering benchmarking services presents a significant revenue opportunity, but how do you determine the right pricing?
More importantly, how can this service expand your practice beyond traditional accounting?
We asked our current Benchmarking Suite subscribers about how much they charge their clients for our Business Benchmark Report and what are the benefits to their firm.
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Pricing Your Benchmarking Services To Your Business Customers
When it comes to pricing, the range can vary based on the level of service you offer.
➤ Standard Business Benchmark Report Packages: On average, our accountant subscribers charge $2,000 for a Business Benchmark Report. Our subscribers may also include our valuation report in this price or charge an additional fee. The Benchmarking Suite Application undertakes an in-depth analysis of the business so there is minimal additional work undertaken by the accountant.
Average time to prepare report: 30mins
Target number of reports per month: 10
Pricing model best suited to:
✓ Accounting firms with up to 10 employees looking to add value to clients and increase revenue per client.
➤ Quick Business Benchmark Report: For a straightforward “prepare and send” service with no follow-up and no valuation, the price charged is around $1,000. This option suits business owners who just like to get the information but prefer to handle the analysis themselves.
Average time to prepare: 15mins
Target number of reports per month: 25
Pricing model best suited to:
✓ Larger firms with +19 employees who are looking to add value to Annual Financial Statements and reports.
➤ Benchmark Report Packages with Advisory Services: At the top end, accountants and business advisors were able to leverage the Benchmark Report and Valuation Analysis to offer strategic advisory services to business owners.
This model included ongoing engagement with business owners via regular meetings. Therefore, the price here was approx. $5,000 for their Benchmarking and Valuation packages, plus, additional fees for auxiliary services. This may include preparation of board reports, strategic plans, employee productivity report, forecasts etc.
Those that positioned themselves as a strategic partner were able to maximise their fees as well as best support their client’s business growth.
Average time invested: 1-2 hours per month
Target number of clients per month: 5-10
Pricing model best suited to:
✓ Accounting firms looking to expand their advisory services
✓ Consultants and advisors working with clients on business strategy
Return on Investment: Time Efficiency
One of the standout features of the Benchmarking Suite is its efficiency. Our subscribers create a standard Business Benchmark Report, Business Valuation and Valuation Analysis for their clients in 30 minutes or less.
This rapid turnaround allows them to maximise productivity and service more clients, leading to a higher overall income. The time investment is minimal compared to the revenue potential, making it a highly profitable addition to your service offerings.
Further, the Benchmarking Suite helps firms and consultants move away from hourly charging, and towards value based pricing.
The Benchmark Report for Your Clients
Business owners find immense value in benchmarking reports for several reasons:
- Clear, Actionable Insights: The reports simplify complex data, helping clients quickly understand where they stand and what actions to take.
- Roadmap for Improvement: Detailed recommendations guide clients through specific steps to enhance their performance, from cost management to strategic planning.
- Competitive Edge: By highlighting unique strengths and untapped opportunities, reports help clients refine their strategies and improve market positioning.
- Business Value Analysis: The reports help clients identify areas that directly impact their business value, making it easier to focus on growth drivers.
- Employee Productivity: Reports reveal inefficiencies, allowing clients to implement changes that boost employee productivity and overall operational efficiency.
- Cost Management: By comparing expenses to industry benchmarks, clients can pinpoint areas where they’re overspending and take corrective actions to optimise costs.
- Building Trust and Long-Term Relationships: Delivering consistent, valuable insights positions you as a trusted advisor, leading to repeat business and opportunities for additional services.
These features make benchmarking reports a powerful tool, helping clients not only to improve their current performance but also to build long-term business value.
How Benchmarking Can Lead to New Advisory Service Opportunities for Accounting Firms
Benchmarking services can pave the way for accounting firms to diversify into various high-value advisory services:
➤ Strategic Business Planning:
○ Help clients identify market opportunities based on industry benchmarks.
○ Advise on resource allocation to ensure investments are aligned with strategic goals.
○ Support the development of long-term business strategies that drive sustainable growth.
○ Assist in scenario planning to prepare for different market conditions.
➤ Operational and Process Improvement:
○ Conduct process audits to pinpoint inefficiencies and areas for improvement.
○ Recommend best practices for operational excellence and productivity.
○ Help clients implement workflow automation to reduce manual errors and save time.
○ Advise on supply chain optimisation to enhance operational efficiency.
➤ Cost Management and Optimisation:
○ Perform cost-benefit analyses to prioritise spending in high-impact areas.
○ Assist in renegotiating supplier contracts for better terms and pricing.
○ Advise on reducing overhead costs without compromising on quality or service.
○ Identify cost-saving opportunities through energy efficiency, technology adoption, or process refinement.
➤ Risk Management and Compliance:
○ Develop risk assessment frameworks to identify and mitigate potential threats.
○ Provide guidance on regulatory changes and how they impact the business.
○ Assist in creating compliance programs that align with industry standards and legal requirements.
○ Offer crisis management planning to prepare for unexpected events.
➤ Performance and Productivity Consulting:
○ Design employee performance metrics to track productivity and outcomes.
○ Implement performance management systems that align with business objectives.
○ Advise on employee training and development programs to boost skills and efficiency.
○ Help establish incentive structures that motivate and reward high performance.
○ Guide clients in brand strengthening to increase market appeal and business valuation.
○ Provide strategies for customer retention and loyalty to enhance long-term value.
○ Advise on intellectual property management to protect and monetise valuable assets.
○ Support in capital restructuring to optimise the financial health of the business.
Expanding into these advisory services allows accounting firms to offer comprehensive support, driving growth and enhancing client relationships. By positioning your firm as a strategic partner, you can open up new revenue streams and ensure your competitiveness in a dynamic marketplace.
Get Benchmarking Today!
Offering benchmarking services is a powerful way to enhance your accounting practice, both in terms of revenue and client relationships. With the Benchmarking Suite, you can deliver valuable insights quickly, allowing you to set competitive prices while maintaining strong profit margins.
Try the Benchmarking Suite today for free to see how your firm can leverage our business performance reports.