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    Economic and ethical issues of pricing

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    As a CPA you are in charge of a small tax advisory firm providing services to individual taxpayers, a substantial group of whom is high-wealth. Your firm is experiencing new pressures from the changing marketplace. New, non-CPA market competitors and competition from do-it-yourself tax-preparation software packages have had a negative effect on your bottom line. Because of these pressures, you are looking at ways to reduce costs. To expand your business and continue successfully you must consider employing non-CPAs.

    Need help writing a paper explaining economic issues that bring concern to pricing your services and products. What ethical challenges will you face in hiring non-CPAs? What standards apply?

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    Hello. I provide the following information to assist you in your paper.

    Economic issues that bring concern to pricing your services and products:

    To all economists, the major concerns are economic growth, inflation rate, and the rate of unemployment. Therefore, these would bring concern to any company that is pricing their services or products in a community. Therefore, they should take into account these factors and attempt to appease to those individuals.

    When dealing with these economic issues, the company should attempt to do the following:

    "?Create an esprit de corps.
    Don't set yourself apart from your target market. Find a way to connect with them emotionally and show them you are all in the same boat. Example: We've all been through a lot during this recession and have gone through some tough times.
    ?Make sure you use strong wording when lowering your prices.
    Don't be namby-pamby. Let folks know exactly what you are doing in bold, strong language. Example: We're slashing the price of our services in half!
    ?Be entirely transparent and upfront about why you are lowing your prices.
    Don't let there be a whiff of anything slightly off about your offer. Let people know exactly why you are lowering prices. Example: We know that many of you have wanted to use our services but found our prices were out of your budget.
    ?Be entirely clear in your call to action.
    Don't apologize for asking them to take action. Tell them exactly what you want them to do and why. Example: Check us out again! We've dramatically lowered the price on most of our products.
    ?Tell folks when you will be going back to your regular prices.
    Don't waffle around about when you will return to regular pricing. Tell them what you'll be doing and when. Example: In six months, when the economic ...

    Solution Summary

    This solution provides information about ethical challenges you face when hiring a non-CPA and the standards that apply.