The Value Pricing Podcast How to Identify and Tackle Scope Creep
On average, accounting and bookkeeping firms that bill based on the hour are losing 8% of their profit by writing time off.
When you look at the bill at the end of the work and see it’s really high because of all the extra unexpected work you had to do, it’s considered standard practice to just write some of the time off and give a lower ‘more reasonable’ price in order to avoid a conflict.
A few years ago, I taught a seminar on scope creep to a room full of accountants and bookkeepers.
There were some larger multi-partner firms and some smaller firms…
During the break, one of the partners of a large multi-partner firm came up to me and told me something INSANE!
He told me that he knows their business writes off AT LEAST £2,000,000 every single year!
2 MILLION
I was FLOORED by the amount of money this business was losing just through scope creep.
Just think of how much money YOU could be losing out on!
All those odd little jobs that crop up whilst doing the work that you never charge for, they all start to add up.
The first step in overcoming the problem with scope creep is identifying what it is and when it happens. When you know that, you can put systems in place to never lose out on profits again and stop doing work for free!
In today’s episode you will learn:
- Uncovering the telltale signs of impending scope creep
- Discover the four distinct varieties of scope creep
- Strategies for effectively combating each scope creep category
- Integrating project scope into your pricing model
- Navigating client expectations to prevent fee disagreements
When you can see scope creep happening, you can put a stop to it BEFORE you lose out on your hard earned profits!