An accounting firm serving franchises was generating £100k profit on £2 million revenue. The consultant recommended a 20% price increase; the partners did 10% instead. Zero clients left, and profit tripled to £300k, proving underpricing was the real problem.
Chapters
You know, I worked with an accounting practice, they were very competitive, £2 million business. They worked in the franchise sector and they were massively undercharging themselves. Now they came to me for marketing advice and I said, it's not a marketing problem, you're not charging enough. Yeah. So £2 million business throwing out only £100K's worth of net profit, right? Which was then split between 6 directors. So I've got, you know, team of 6 people, 3 of the directors and the FD, you know, sales and marketing director and another guy there. And I'm like, it's not a— guys, it's not a marketing problem. So, I said, listen, if you've got 2,500 customers, if we put the prices up by 20%, so I didn't push them too hard, 20%, zero attrition, we've just quadrupled your profit. Your profit margin, yeah, because it all falls in on the bottom line, doesn't it? So, behind my back, they went ahead and just did a 10% one, so they weren't fearless, which is a bit annoying. But literally zero attrition and that money fell down. So, they went from $100K to $300K net profit.