This week, Ron and Ed deliver a wide-ranging pricing update, exploring the latest thinking shaping both accounting firms and the broader business world. Drawing from recent articles, posts, and commentary, they examine how AI companies like GPT, Claude, and Perplexity are positioning and pricing their offerings, including the growing role of token-based pricing models and what they signal about the future of value measurement.

The conversation also dives into the dangers and unintended consequences of discounting, inspired by recent insights from pricing experts in the PPS community. Along the way, Ron and Ed connect these ideas back to accounting firms, professional services, and the practical challenges businesses face when trying to price for value in rapidly changing markets.

SHOW NOTES

Segment one

News from the Accounting Today Firm Growth Forum that Ed recently attended https://www.accountingtoday.com/firm-growth-forum-2025
AI driving firms, clients to revisit pricing models https://www.accountingtoday.com/news/ai-driving-firms-clients-to-revisit-pricing-models
Time’s Up, Babycakes by Blair Enns (guest and friend of the show) https://www.winwithoutpitching.com/insights/times-up-babycakes
Shawn Yeager: “Clients expect AI to cut your costs. But 100% would pay more for advisory that generates more value. The question is which side of that equation you’re on.” https://upshiftco.com/blog/outcome-pricing-captures-the-upside
Regarding McKinsey: “Projects are now far more focused on outcomes and the performance of deliverables.” https://medium.com/predict/industry-shakeup-why-mckinsey-is-moving-to-performance-based-fees-ee24abcc6ff8
“The Billable Hour Is Dead. AI Just Signed the Death Certificate” by Armando Hernandez https://www.linkedin.com/pulse/billable-hour-dead-ai-just-signed-death-certificate-armando-hernandez-gzozf/

Segment two

Value Protection is Not Optional by Jon Hubbard https://www.boomer.com/post/value-protection-is-not-optional
“Time is not a resource because you can replenish a resource.” —Ron Baker
On the billable hour: “Ron, have you ever sat at your desk and was just thinking about something? And didn’t have your hands on the keyboard actually doing something? Don’t we want our professionals to think?!!?!?” —Ed Kless

Segment three

Byron Johnson, a CPA in Canada, sent in a great note to the show about three-tier pricing. Ron and Ed talked about this during the start of the third segment.
Let's Get Real or Let's Not Play by Mahan Khalsa https://www.amazon.com/Lets-Get-Real-Not-Play/dp/1591842263
Quote from the show today: “How you sell is indicative of how you solve” (attributed to Mahan Khalso)
On offering three tier pricing to customers: “When you’ve got to sit down and come up with your three choices, you are effectively thinking through competing with yourself. And that’s important.” —Ed Kless

Segment four

If this intrigues you, LISTEN to segment four of the show today: “How do you change a service into an experience? You customize a service, and then that turns it into an experience. And we think the best way to do that is with subscriptions.” —Ron Baker
Shameless plug: Threshold has a transformation class for those wondering about turning a service into an experience. https://thresholdnow.com/
On confident pricing: “You are 2-3 times any of your competitors” “Huh, that’s odd, because usually it’s like 5-6 times.”

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits.