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Why Most Firms Lose Money Before They Even Send the Invoice
Is undercutting forcing you into underselling?
Arun Mehra
May 23, 2025
Hi everyone,
Most accounting firms are way too nice about their pricing.
They price to stay safe. To stay competitive. To avoid losing the client.
Stats say, 61% of small accounting firms say they fear losing clients if they raise their fees—even when delivering more value.
That mindset costs more than it protects.
I’ve spoken to partners running million-pound firms and solo practitioners alike. And this comes up again and again—"Are we charging enough for what we actually do?"
The answer? Usually not.
Underpricing Is Not Modesty—It’s a Strategic Leak
If you're still selling compliance services at pre-pandemic prices, you’re playing a losing game.
In fact, 72% of accountants admit they’re not confident in pricing their advisory services.
Margins are shrinking, expectations are rising, and the market is flooded with low-cost players. Worse, firms often give away advisory. They bundle strategic input into year-end reviews or throw it in “as a value add” instead of charging for it.
But let’s be real: when advisory is free, it’s not seen as valuable. It’s just noise in a service list. And that’s how firms lose positioning, profit—and eventually people.
You can’t scale a firm on goodwill. You need pricing that reflects the true worth of your expertise.
Value-Driven Pricing Models Are Your Lifeline
Over 40% of firms still price based on time rather than value, leading to undercharging for strategic input.
The best firms price based on impact/value.
That means understanding what your service means to the client, not just what it costs you to deliver.
They use fixed-fee models, diagnostic pricing tools, and they lead with confidence. They don’t flinch when quoting five figures for a multi-site advisory project, because they’ve trained their teams to sell value, not time.
And guess what? Clients respect it. Especially when they understand the business case behind your fee.
If You’ve Got the Credentials, Use Them
So many Indian and global accountants hesitate when pitching to Western clients. They second-guess their rates. Hold back on proposals. Assume they need to “compete on cost.”
But if your team is ACCA/CA/CPA-qualified, has industry specialism, and delivers at pace—why shouldn’t you charge like the best?
Global buyers care about three things: credibility, clarity, and confidence. If you’ve got the credentials, your pricing should reflect that. Full stop.
The biggest difference between a £10,000 client and a £2,000 client? Your ability to explain why the £10,000 solution is worth every penny.
What We Do at Samera
Years ago, we were pricing our offshore services with a “just enough” mindset. But once we saw how much value we were delivering—not just labour but growth—we restructured completely.
Now, we help both Indian firms and UK firms build pricing models that align with their positioning, not their insecurity.
Book a call with us and we’ll show you how to price with impact, not apology.
Cheers,
Arun
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