(Feb. 8, 1999) Baker is a contributing editor of CPA Profitability Monthly and author of The Professional's Guide to Value Pricing. He is a frequent conference speaker, a consultant to CPA firms and an instructor with the California CPA Education Foundation. In Part Two of this interview Baker explains how to implement value pricing into an accounting practice.

	Track 1
Baker contends that any service offered by a CPA can command value pricing after the CPA ascertains the value of the particular service to each customer each particular time.

	Track 2
Baker explains the concept of a fixed price agreement (FPA). In order to develop an FPA, the CPA must determine both the customer's needs and their wants.

	Track 3
According to Baker, the customer must be directly involved in the creation of the fixed price agreement. While the FPA should specify the scope of services, the value of those services and the terms of payment, it does not replace the engagement letter.

	Track 4
Baker says CPAs are leery of value pricing because they are afraid the scope of a job might change. He explains why change orders then become an integral part of value pricing.

	Track 5
According to Baker, CPAs must stop relying on compliance-based services like audits, and begin concentrating on innovative services like financial planning, consulting and insurance sales. He also explains the concept of total quality service.

	Track 6
Baker admits that the transition from hourly billing to value pricing involves more risk for the CPA, but explains that in business, to make more profits, you must take more risks. Baker compares his theory to the evolution of the forward pass in early 1900s college football.

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