Pricing Strategies, Subscription Models, and Technological Evolution in the Industry

Introduction:

In this podcast episode, join Ron Baker, Radio Talk Show Host - The Soul of Enterprise, and Founder of VeraSage Institute, with Ganesh Ranganathan, CEO of Integra Global Solutions, as they discuss the dynamic landscape of pricing strategies and the shift toward subscription models in the accounting industry.

In this episode, you’ll cover:

• 01:08 - The transition to value pricing: Ron discusses his transition from hourly billing to value pricing and the positive feedback from customers.
• 03:19 - The subscription business model: Ron introduces the concept of the subscription business model and explains its advantages over value pricing.
• 04:23 - The benefits of a subscription model: Ron discusses the convenience, simplicity, peace of mind, and time savings that a subscription model can offer to customers.
• 15:27 - The talent crisis and changing the business model: Ron discusses the shortage of accountants in the labor market and suggests that changing the business model, away from hourly billing, is essential to attract and retain talent.
• 20:34 - The future of AI and its impact on accountants: Ron discusses his thoughts on blockchain technology and artificial intelligence, emphasizing their potential to complement human skills rather than replace accountants.
• 23:28 - The importance of customer interaction in accounting firms: Ganesh and Ron discuss the balance between day-to-day work and client interaction in accounting firms, highlighting the value of spending more time with existing customers and making a deeper impact on their lives.

Podcast Summary:

In this podcast episode, host Ganesh discusses with Ron Baker, an expert in the accounting industry. Ron shares his background in accounting and his experience with value pricing. He discusses the drawbacks of the billable hour and the benefits of alternative pricing models such as fixed pricing and value-based pricing.

Ron believes that the subscription business model is the future for accounting firms, offering convenience and peace of mind to customers. He advises firms to focus on either big businesses or small businesses and emphasizes the importance of communicating the transformations they can provide to clients.

Ron also discusses the impact of technology, such as blockchain and AI, on the accounting profession, highlighting their complementary nature to human accountants.

About our Guest:

Ronald J. Baker began his CPA career at KPMG in 1984, and today, he's the founder of the VeraSage Institute, a prominent think tank for global professional education. He's also a radio host of "The Soul of Enterprise: Business in the Knowledge Economy" and an accomplished author with eight best-selling books, including "The Firm of the Future," "Pricing on Purpose," and "Implementing Value Pricing." His upcoming book, "Time's Up!: The Subscription Business Model for Professional Firms," is set to be published in December 2022.

About our Host:

Ganesh Ranganathan is the President and founder of Integra Global, a leading accounting outsourcing company. Ganesh is a seasoned executive with more than 25 years of experience in the accounting outsourcing industry.

Ganesh is committed to creating a supportive work environment that fosters creativity and innovation, and he is passionate about delivering exceptional customer service in the accounting industry.