In this short instructional video, Mike Michalowicz (author of Profit First) explains a simple yet powerful proposal technique for accountants and bookkeepers called the "comparative" pricing strategy. He demonstrates how presenting multiple pricing options side‑by‑side on a single page leverages the human brain’s tendency to compare items simultaneously. He recommends offering exactly three value‑based pricing options, ordered from highest price to lowest, to create a comfortable decision hierarchy. The video cites psychological research (the optimal three‑option rule and the Germanic reading pattern of top‑to‑bottom, left‑to‑right) to show why this layout makes prospects feel in control while subtly guiding them toward the middle or higher‑priced choice. By using this comparative format, accountants can differentiate themselves from competitors and increase the likelihood of winning projects.
Chapters
Hi! I'm Mike Michalowicz. I'm the author of Profit First, and I've teamed up with Intuitive Accountant to bring you this tip. It's called the comparative. Look at the circle on the screen. Now look at this next one. When they're shown on separate screens, it's hard to tell the difference. But when they're shown next to each other, it's easier to see which one's bigger and which one's smaller. It's called a comparative. And in fact, if I put circles around those initial circles, it becomes very obvious which one's bigger and which one's smaller. Our mind and your prospect's mind is designed to compare things that are presented simultaneously. Well, here's the trick for you. When you do a proposal for your clients, show them your value-based pricing in a comparative format. That means on a single page with multiple pricing options. Show option 1, option 2, and option 3. And yes, studies do show that 3 options are the optimal. It makes your customer feel comfortable that they have the ability to make a choice of their own and are not being controlled, if you will, or directed by you. But there's few enough choices that's obvious which choice to make. If you do more than 3 options, it can become overwhelming. One more trick: when you do your comparative pricing, price your options from the most expensive price, the highest priced, down to the least. Why? When a customer goes through it, they follow what's called a Germanic reading process. Means we read from top to bottom, left to right. And when they go through that process, the first number they see will be the biggest number. That sets the stage for the comparative. The second number, being smaller, will feel more comfortable. And then of course the last number, even smaller, again feels more comfortable. If you do the reversed, like many of your competitors probably do, and show the smallest number first and build up, it gives the customer a feeling of uncomfort— or discomfort is the right word— as they go through the proposal. So, use the comparative pricing strategy. That's 3 options on the same page in reverse order. It'll definitely make you stand out from all other accountants and bookkeepers and give you the project.
