Been doing this 9 months now and getting mixed results with pricing. Started at 50% contingency but some clients want hourly rates. What's working for everyone else?
Pricing strategy - hourly vs contingency vs flat fee
I do 40% contingency for audits under 5 years of bills, 35% for longer lookbacks. Hourly only for consultation work at $125/hour.
Flat fees work well for standard audits. I charge $2,500 for 3-year audit on accounts under $50K annually. Contingency for bigger clients.
Mix of all three depending on client type. Small businesses like flat fees. Big corporations want hourly. Industrial clients are fine with contingency.
Been doing flat fees in Jacksonville and it's working well. Clients like knowing upfront cost. I just build in cushion for complex accounts.
Contingency is still king in Mississippi. Most of my clients wouldn't pay upfront. They want to see results first.
The key is matching pricing to client comfort level. I always offer options and let them choose. Usually tells you something about their cash flow too.
Good pricing strategy adapts to your market and client base. Don't be afraid to experiment but track your profitability on each approach. What works in one region might not work in another.