Sample Fixed-Price Agreement

Editor’s note: This is a Web-exclusive exhibit for “Pricing on Purpose: How to Implement Value Pricing in Your Firm.”

November 19, 2009

Dear Client:

In order to document the understanding between us as to the scope of the work that ABC, CPAs will perform, we are entering into this Fixed Price Agreement with XYZ, Inc. To avoid any misunderstandings, this Agreement defines the services we will perform for you as well as your responsibilities under this Agreement.

2010 PROFESSIONAL SERVICES

ABC will perform the following services for XYZ during 2010:

• 2009 XYZ S Corporation Tax Returns                
• 2009 Financial Statement Review with PBCs (Prepared by Client) to be provided by XYZ by March 15, 2010
• 2010 Tax Planning        
• Unlimited Access in 2010*

TOTAL 2010 PROFESSIONAL SERVICES         $XXX      

*Included in the Unlimited Access are the following services to be provided by ABC to XYZ:

• Unlimited meetings, to discuss operations of XYZ, business matters, tax matters, and any other topic at the discretion of XYZ or its employees and/or agents.
• Unlimited phone support for XYZ personnel and/or independent contractors and agents regarding accounting assistance, transaction analysis, etc.

Because our Fixed Price Agreement provides ongoing access to the accounting, tax and business advice you need on a fixed-price basis, you are not inhibited from seeking timely advice by the fear of a meter running endlessly. Our service is built around one-price pricing, as opposed to hourly rates, and offers you access to the accumulated wisdom of the firm through CPAs with substantial experience, who can help enhance your company’s future and achieve its business objectives.

While the fixed price entitles your company to unlimited consultation with us, if your question or issue requires additional research and analysis beyond the consultation, that work will be subject to an additional price, payment terms, and scope to be agreed upon before the service is performed, and a Change Order will be issued to document this understanding.

Unanticipated Services

Furthermore, the parties agree that if an unanticipated need arises (such as, but not limited to, an audit by a taxing agency, a financial statement audit or compilation required as part of a lender financing agreement, or any other exogenous service not anticipated in this agreement by the parties) that ABC hereby agrees to perform this additional work at a mutually agreed-upon price. This service will be invoiced separately to XYZ, using a Change Order.

Service Guarantee

Our work is guaranteed to the complete delight of the customer. If you are not completely satisfied with the services performed by ABC, we will, at the option of XYZ, either refund the price or accept a portion of said price that reflects XYZ’s level of value received. Upon final payment of your invoice, we will judge you have been satisfied.

Price Guarantee

Furthermore, if you ever receive an invoice without first authorizing the service, payment terms and price, you are not obligated to pay for that service.

Payment Terms

The following payment terms are hereby agreed to between XYZ and ABC:

To assure that our arrangement remains responsive to your needs, as well as fair to both parties, we will meet throughout 2010 and, if necessary, revise or adjust the scope of the services to be provided and the prices to be charged in light of mutual experience.

Furthermore, it is understood that either party may terminate this Agreement at any time, for any reason, within 10 days of written notice to the other party. It is understood that any unpaid services that are outstanding at the date of termination are to be paid in full within 10 days from the date of termination.

If you agree that the above adequately sets forth XYZ’s understanding of our mutual responsibilities, please authorize this Agreement and return it to our office. A copy is provided for your records.

We would like to take this opportunity to express our appreciation for the opportunity to serve you.

Very Truly Yours,

BY:__________________________

       Allan Somnolent, partner, ABC, CPAs

Agreed to and accepted:

BY:___________________________      DATE:________________

      Customer, president, XYZ, Inc.