How to Price Float For Your Clients
Deciding how to build app advisory into your services can be a real struggle. Finding a price point and format that works for both you and your clients involves striking a delicate balance.
We’ve spoken with our partner accounting and bookkeeping firms, and from our research, we believe there are four choices when deciding how to price Float for your clients.
1. Include Float as part of a higher tier of services
Many of our most successful partners have chosen to pay the discounted cost of Float themselves, and use Float to attract clients to a higher tier of accounting services, perhaps bundled with other apps. Our partners frequently bundle Float with automated data entry software like Receipt Bank or Autoentry, and debtor management software such as Chaser. This option will help increase conversion to a higher paid plan, and help increase retention of those clients.
2. Make a small margin
The cost of Float for your clients is significantly lower than what they would pay if they did not go through you. This means that you could make a small margin while still allowing clients to pay less than full price, but greater than the exact cost that Float charges you. This gives you capacity to train your clients on the software and potentially to help with ad hoc questions further down the line.
3. Make a larger margin – increase billable hours
Another option is to make a bigger margin by creating a bolt-on or included cash flow forecasting service. In this case, you could bill for the cost of Float, plus training clients, and ongoing support for managing their forecast. Here, we’d recommend regular reviews of Float to be a key part of your interactions with clients.
For instance, if you charge for two hours for full set-up at £100/hr, and then one hourly check-in per month, you could make £1400 per client per year.
4. Pass on the exact cost
If you don’t have the capacity to continue to support clients with questions about their forecast and use Float as one of the focal points of your meetings, you could pass on the exact cost of the software. This is beneficial for your clients as they would get a greatly discounted rate than what they’d pay for Float without you as the reseller.
There are many ways to build accounting apps into your services. In fact, this is something that can help prepare your firm to build upon your business advisory services, and weather the future of accounting.
Check out our top ten list of the best Xero Add Ons for businesses for more inspiration!