Talked with a local CPA at Chamber coffee and now I'm second guessing my pricing

Ran into a guy named Dale who does books for a few restaurants over on 6th. He asked what I charge for my cleaning service and when I told him $35 an hour, he just laughed. Said I was leaving at least $10 on the table and that my competition up in Canyon charges $50 easy. He pointed out that I cover my own supplies and drive time, so really I'm making closer to $25. That conversation stuck with me all week. Has anyone else had a moment like this where someone in finance or accounting made you rethink what you charge? How did you decide on your rate?

2 comments

2 Comments

dylan_thompson1mo ago

Funny you mention this, because the last time I raised my rates, my own brother in law told me I was overcharging and that he could do it cheaper himself. Turns out he never actually did it, but it did make me feel like a fool for about a week. That CPA guy sounds like he knows what he's talking about, but keep in mind he's not the one scrubbing toilets. I'd say take the advice as a nudge, maybe test $40 on new clients and see if they blink. Worst case, you get a few no's and learn something.

hugo_hayes1mo ago

Did your brother-in-law ever actually price out what it would take to do it himself, or was he just running his mouth to feel superior? That's the real question with people like that, they never factor in their own time or the mess they'll make. And honestly, the CPA's advice is fine in theory, but he's not the one dealing with the cheap folks who haggle like they're at a flea market. The $40 test on new clients is smart, but I'd say watch how they react more than what they say. A quick yes or a quick no tells you way more than someone who sits there trying to negotiate you down before you even finish your pitch.