The Fixed Fee Trap -- Sustainable Profit

What this episode covers

Fixed fee billing can create better incentives for accounting firms, better client experiences, and more sustainable profitability. But it only works if you know your costs, understand the effort required, run thoughtful fee reviews, and keep tracking time.In this episode, Max and Brooks talk through why hourly billing can punish efficiency, how automation changes the pricing conversation, how to calculate a baseline fixed fee, and why time tracking is still essential even when clients are not billed by the hour.Chapters:00:00 Why fixed fee matters01:55 Better incentives for firms and clients03:52 Automation makes hourly billing risky05:25 Fixed fee vs. value-based billing06:31 Managing fixed fee work in Karbon07:07 Know your internal cost10:55 Use a short first engagement13:28 Run better fee reviews15:09 Improve process or raise rates18:57 Explain the price increase20:04 Pricing takes math and people skills22:26 When to lower a fee24:51 The danger of autopilot price increases27:15 Clients buy peace of mind29:05 Efficiency creates capacity31:15 Keep tracking time33:04 Time data is firm intelligence34:02 Closing thoughts

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