"What Do You Charge?"

[taxjungle]

I would like to know how some of you respond to persons who call your tax office for the first time and ask: "What do you charge?"

I have tried different approaches but most of the time they don't make an appointment.
Have you found a response that gets them into your office? I feel if I can just get them into my office that they would decide to use my services.

I would appreciate your responses. Thank you.

[taxmandan]

The odds of getting that person in your office are low if they are actually price shopping unless you undercut the other tax offices with the lowest fees in town.

Some people ask that question because they don't know what else to ask. Sure everyone wants the lowest price & highest value service but they don' know how to ask about your experience or ability as a preparer.

We use some of the following, some of which I borrowed from another web board:

"To be fair to you and us, we don't give price quotes over the phone. We are not the cheapest tax service in town, our fees cover the cost of doing business and are fair for the professional service we provide our clients. If you want to make an appointment we can look over your tax information and give you a quote at that time. If you don't like our fee you are welcome to take you papers and leave with no hard feelings."

[jimmcg]

I would like to know how some of you respond to persons who call your tax office for the first time and ask: "What do you charge?"

I have tried different approaches but most of the time they don't make an appointment.
Have you found a response that gets them into your office? I feel if I can just get them into my office that they would decide to use my services.

I would appreciate your responses. Thank you.

I tell them if they have to ask they cannot afford me.

[taxxcpa]

How much do you charge

I tell them that most returns are less than $ 500.

[Gretel]

"To be fair to you and us, we don't give price quotes over the phone. We are not the cheapest tax service in town, our fees cover the cost of doing business and are fair for the professional service we provide our clients. If you want to make an appointment we can look over your tax information and give you a quote at that time. If you don't like our fee you are welcome to take you papers and leave with no hard feelings."

I like that response. Some just look for the cheapest price, some don't even realize that there is much more to tax preparation then getting the best price (and I am talking about their end not mine).

Once I stopped even trying to give a price over the phone and just said that it is impossible to give a price not knowing how much work is involved. I changed this to talk a little more to a caller and explaining that I used to do this but realized that this is impossible and two or so more friendly sentences, trying to build a bridge.

Nobody ever has come to my office after such a call and I think it is probably better that way. Whoever wanted more quality service just came, no such questions asked. Well, thats's not quite true. Some years ago an elderly woman (I am doing her daughter's tax return for a number of years) came in after her cheap preparer had health problems. When I looked over her stuff I realized that this is at least $200 worth of tax work and she had paid $50. Right away I told her that she does not want to hire me and I could not even come close to what she had paid. But she wanted me and was willing to pay whatever I asked.

[dyne]

Sometimes I ask what they paid last year. If that fee sounds sufficient I will tell them
I will charge them the same fee. I believe that we do not want such clients as they
will go somewhere else next year to someone who charges less. Now we can tell them
that H & R Block is advertizing to prepare simple returns free. I heard of a preparer who
only charged $3 to prepare any returns. I sometimes tell them that my average fee for a
simple return is $100 and more complicated returns are $200.

[superman]

Range

When people call me I give them a range and always make sure I get a phone number and e-mail. The problem that I have encountered this year is everyone that has called me has not come in which is odd. Most years I at least get a few .

Maybe it is other prepares price shopping to see if they are in the same range as me or not but one thing I do not do any longer is try and get into a price war with others. I maintain what I am worth and if you do want to pay my fee than I guess you will go somewhere else. The ones that I have found that are the worst are the ones that have the most amount of money and want the cheapest price.

How come in our industry people feel that they can barter with us and try and get the lowest price? I would never think of going to my doctor and doing what alot of people do to us!!

Superman

[oceanlovin'ea]

Had a few

I have had a few call and ask about fees. But I think most of them have been referrals that are calling to make an appointment and wondering what the price range is. They already know what I have been charging their family, friends or whoever referred them to me.

I guess since I am not in the phone book or advertise any other way, the only people who call me are referrals.

But I do like taxmandan's response and would use something similar to that if I were asked that question.

Linda, EA

[MAJ]

. The ones that I have found that are the worst are the ones that have the most amount of money and want the cheapest price.

I say the same thing. My sister is 'frugal'. Polite way of say CHEAP!. Anyway.. Here's why!..
Are you ready..

That's why they have MONEY!! Because they are CHEAP!!

[Uncle Sam]

What Do You Charge

My answer is -

I can't possibly tell you unless I see the tax return that was prepared last year because I don't know what schedules need to be prepared, how organized your tax information is, and how long I need to spend with you in obtaining what's needed to prepare the return.
It's like asking a car salesman "How much does a car cost" without him/her knowing whether it's a new/used, 2dr/4dr, options/no options, large/small, etc.

By the time I get finished with the response - they don't persist in asking again. They either make an appointment or move on.

[erchess]

Counter Question

I ask whether they believe statement A or B.

A - I have a simple return and anyone who would dare to offer tax preparation can do it so I am looking for the cheapest price.

B - I understand that preparers have different amounts of training and experience so some are worth much more than others and I need one of the better sort.

If they choose A I tell them I am not the cheapest in town and wish them well. If they say B or are between B and A I discuss my training and experience and the forms they need filled out.

[Jiggers]

Isn't giving a fee estimate for something you haven't seen like giving a haircut over the phone?

Seriously, I tell callers that I must see the prior year return and this year's information. I tell them that I will give them an estimate and that they are free to leave if they don't want to pay it. But I will not give them an estimate over the phone.

If pressed, I will give them a range: 1040A's $125 and up. 1040EZ's $100 and up. 1040's $175.00 and up. I tell them that I charge by the form and schedule and how many items on each one, how many W-2's, 1099's, etc. If a Schedule C, E, or F is involved the fee for the 1040 will increase by about $100. I also tell them that I will tell them the fee before I start the return.

[Kram BergGold]

My help to you

Many of the respondent's answers are designed to make the inquirer go away. This I get.
However, here is my answer to the tax pro who wants the business. If you charge by the hour you say, my fee is X per hour and the average fee is Y. If you charge by the form you find out what forms they use and compute the fee and then add somthing to cover what was missed. So you say the fee will be about X but it could be as high as Y.
When you really want the business the Y amount is not to high. When you only want the business at top dollar the Y amount is high.

[Uncle Sam]

What Do You Charge?

For many years - I have listened to tax preparers - CPAs, EAs, and others mention how they charge - where the main choices are flat fees vs itemized menu (form #, items/form).
And I realize this is slightly off topic - but I believe it's important.

If I wish to present myself to clients as a true professional - interested in providing a totally honest service to clients by doing a complete thorough polished job - I'm frankly not interested in how many lines it takes to complete the schedule (unless of course, Schedule D has a couple of hundred transactions where you need to make a decision to consolidate the totals and make an alternative type of filing procedure), and the client isn't going to know exactly what schedules are going to be used in the preparation of the return based on their data, so I feel it's really beneficial to charge on a flat fee basis (whatever it is - hourly fee, type of return sophistication, income level, type of investments and required schedules) rather than a menu pricing which I feel cheapens the level of impression the client is going to feel.

Maybe what we OUGHT to do - is price the way car washes or muffler shops charge -
Basic, Deluxe, Super and disclose that the higher level services include the next lower level services +.

[BP.]

If you want to turn a phone call about your fees into an appt with a qualified client, you can ask if they are price shopping. If they say yes, you can say you aren't trying to be the cheapest. That may weed out the clients you don't want.

You can say your fee is based on what is involved with preparing their return. At that point, if they don't want to be viewed as trawling for the bottom price, they'll open up, start to discuss their situation, why they need a pro, or a switch to a new one, and you can build rapport, ask a few key questions, and let them see you as the competent, caring professional they're looking for. Price is now out of the equation. Listen for their "buying signals" and get the appt.

They just want reassurance you are the right person for them. You can tell from your first question about price shopping, if they are the right kind of client for you. Then you don't have to invest that minute or two on the phone "selling" yourself.