Ron Baker signs books for BLI.
Originally uploaded by marylandcpa.

The top tip for increasing customer satisfaction, retention of key employees and increased profitability? Implement value pricing!

I think Ron Baker's theory is dead-on for any professional services firm and especially relevant for CPA firms today. His theory starts with the customer and works back, instead of the age-old practice of cost-plus pricing. CPAs who are trained in cost analysis have to change their whole view from inside-out (Product > Cost > Price > Value > Customer)  to outside-in (Customer > Value > Price > Cost > Product).

I love Ron's approach and his passion for changing our profession. His advice is much-needed therapy for today's CPA firms that are seriously over-capacity.

His latest book, "Measure What Matters," is a must read for the new year.