Stop the Leak: Ron Baker’s Roadmap for Pricing Power and Revenue Growth

For decades, accounting firms have lost revenue not through incompetence, but through outdated pricing models. In this influential WorkflowCon session, Ron Baker, one of the profession’s most outspoken advocates for value-based pricing, presented a practical and provocative guide to plugging revenue leaks and transforming client relationships. The central message: pricing should reflect customer value, not internal costs or arbitrary hourly rates.

Why Cost-Plus Is Outdated and Costing You Money

For most accountants, hourly billing is the default—but Baker argued it’s a formula for lost profits. “Cost-plus pricing is easy to calculate, but it’s precisely wrong,” he said. Why? Because it’s rooted in your costs and desired net income, not what your service is actually worth to the client.
Clients aren’t buying hours; they’re buying outcomes, relief, and results. Value is also subjective and contextual. Two clients with the same deliverable might pay vastly different amounts based on urgency, complexity, or risk. Baker reminded accountants that every transaction is a value exchange, not a labor exchange:

“Customers don’t care about your costs. They care about the value you help them achieve.”
Firms that stick with time sheets and cost-based rates cap their income and make themselves interchangeable with every other provider. Value-based pricing puts the focus back where it belongs, on the transformation you deliver for your client, and the price they’re actually willing to pay for it.

How to Offer Three-Tier Pricing That Clients Actually Want

One of the most powerful tools in Baker’s playbook is the move from open-ended quotes or one-size-fits-all pricing to three clearly defined option packages. This is sometimes called “Goldilocks pricing” or the “three-tier method”, and it leverages well-studied consumer psychology.

Here’s how it works:

• Option One (lowest price): Basic compliance, minimal extras, fast payment terms.
• Option Two (mid-tier): Enhanced service, more value, moderate payment flexibility.
• Option Three (premium): White-glove or VIP-level, unlimited access, value guarantees, flexible terms.

Baker explained: “Customers like choices. Most people choose the middle option, but the premium is there for those who want the best, and the entry option catches the price-sensitive.” If you only offer one price, you’ll never know how many clients would have chosen more, and you’re leaving significant money on the table.

Option packages also make your full menu visible. Even if a client picks the basic tier, they see what’s possible and may upgrade in the future. This transparent approach builds trust and differentiates you from competitors who still use generic, hourly-based proposals.

How to Calculate Minimum Value-Based Pricing for Accounting Services

Switching to value-based pricing can be daunting, but Baker gave attendees a clear formula for setting your lowest price, the absolute floor you should ever offer. Here’s his approach:

• Estimate the required hours up front and multiply by your old hourly rate (this is your “base”).
• Add price premiums for every value feature you offer:
  • Fixed pricing (certainty for the client): 10–20%
  • Change order policy (no unauthorized work): 5–10%
  • Value guarantee (“pay what it’s worth if you’re not delighted”): 10–20%
  • Flexible payment terms (monthly, split, etc.): 5–15%
  • Unlimited access (no clock-watching for calls): 10–20%

This premium stacking can raise your base price by 45–90% (or more), depending on your firm and market. “If you think that’s too much, test different percentages, but don’t skip the premiums. Clients will pay for peace of mind, certainty, and access,” Baker emphasized.

Unlike hourly rates, this formula ensures you never “go backward”—the minimum is always higher, and you still have room for higher tiers. Plus, this upfront model improves cash flow by tying payment terms to the chosen package (with faster payment required for lower-priced options)

How to Eliminate Scope Creep in Accounting

Scope creep is one of the costliest and most frustrating problems for accountants. It happens when client requests gradually expand, or when you do more than originally agreed without clear compensation. Baker’s solution is transformative: price and define your service by role, not by endless lists of tasks.

• Accountant/bookkeeper: Responsible for historical recordkeeping and compliance (“hindsight”).
• Controller: Adds real-time insight, cash flow, budgeting, and advanced reporting.
• CFO: Brings “foresight”—strategic planning, modeling, KPIs, and executive guidance.

When you present options by role, it’s clear what’s included and what’s not. If a client wants more, they upgrade to the next tier. This eliminates the need for endless change orders, minimizes awkward conversations, and prevents both scope creep (client-driven) and scope seep (the habit of doing extra work unbilled).

Baker compared this to the medical model: “Doctors don’t have scope creep; they stay in their lane and refer to specialists. Accountants should do the same. Only offer what you can deliver with excellence.” This model also means you never have to list every possible exclusion, which reduces risk and keeps your contracts simple

Implementing Value Guarantees and Change Order Policies in Accounting Firms

To maximize both revenue and client trust, Baker recommends including a strong value guarantee and a formal change order policy in every engagement. Here’s how:

• Value guarantee: Add a clause such as, “If you are not completely delighted with our performance, you may pay only what you believe is fair.” Baker provided sample wording and urged firms to use the word “delight,” not just “satisfied,” for emotional impact.
• Change order policy: Make it a formal policy, not a preference. Any request outside the agreed package triggers a brief “change request” process. Always clarify the business purpose and budget for new work, and get approval before starting.

These steps create a competitive edge and signal that your firm stands behind its work. Change order policies also streamline conversations around scope, making it easier to charge for additional services without damaging the relationship. Over time, both systems increase trust and help you capture every dollar of value delivered.

Shifting Accounting Firm Pricing from Transactional to Transformational Client Relationships

The ultimate benefit of value-based, options-driven pricing is a complete shift in how your firm is perceived as a strategic partner and advisor. Baker closed with this message:

“Price the customer, not the service. A good price comprehends the client’s goals, their desired future, and the transformation you help them achieve.”

Firms that make this shift free themselves from the limits of hours, unlock deeper client loyalty, and capture value that would otherwise go to competitors or be lost in the shuffle. “The ceiling is artificial. Move it to the floor and build higher. Price for transformation, not transaction,” Baker concluded.