What I tell my clients who whine about my bill.

[kpangelinan]

Block prices are reasonably consistant within a given region for the corporate-owned offices. The only difference would be that various state returns have different price points and that premium offices are more expensive. Franchises are another story as they cannot charge more than the company stores but can charge much less. Here in WNC, the franchises south and west of us have much lower fees, while north and east are pretty much the same, only more likely to write coupons when needed.

Block released its quarterly statement last week and it showed the effect of losing the RAL business: returns are up but total dollar volume is down. This may be an artifact from the late filing of sCH-A, etc, but may also mean the RAL clients and their expensive EITC forms have chosen somewhere else to file this year. I will be glad when nobody has them and we are all omn an equal footing.

I'll be glad as well. Their stock hasn't been doing all that great either as just a few months ago, it fell to it's lowest since 1992 (went public in 1980?) is back up to 2001 levels, but still not good.

[snowshine]

Block prices are reasonably consistant within a given region for the corporate-owned offices. The only difference would be that various state returns have different price points and that premium offices are more expensive. Franchises are another story as they cannot charge more than the company stores but can charge much less. Here in WNC, the franchises south and west of us have much lower fees, while north and east are pretty much the same, only more likely to write coupons when needed.

Block released its quarterly statement last week and it showed the effect of losing the RAL business: returns are up but total dollar volume is down. This may be an artifact from the late filing of sCH-A, etc, but may also mean the RAL clients and their expensive EITC forms have chosen somewhere else to file this year. I will be glad when nobody has them and we are all omn an equal footing.

[kpangelinan]

Just an aside: Many offices aren't franchises, but are owned and operated by HRB's retail tax subsidiaries. That doesn't imply that prices in those offices are necessarily uniform across the country, or even within a single state.

Didn't know that either.

[origun]

RALs

My HRB office doesn't offer RALs this year and we have noticed no drop in clients. Prior to this year, RALs constituted less than 15% of my own clients. Everyone at my office (tax preparers) were glad to not have them any more. Even when available in the past, all of my colleagues tried to discourage clients from taking them.

As to prices at Block, my office is a corporate one and prices are set by corporate (or perhaps regional) headquarters. We have no say at our office. Franchise offices have more freedom to set their own prices.

[JAinNC]

JohnH - Yes it is about QUALITY

You could also tell them that buying quality service is like buying oats. For a fair price I can get you good quality oats. But if price is the only thing you're interested in, then you'll need to go somewhere else. You'll pay less money but you'll have to settle for oats that have already been though the horse.

At this point in my life I am increasing my fees on a regular basis. I have NOT had anyone who needed to hear your wonderful why of saying - They could have me or they could have "previously digested oats" -- So fitting because my initials are JA.

My long time clients and the new ones they send to me know I am worth it and more.

This JA, however may find the need to use your well put senario.

I do require a full retainer fee for prior years and none current bookkeeping. That in itself weeds out the dead beats that would never payer me. Experience can teach us much if we learn something.

Happy Almost Spring

Jeannie EA

[Gary2]

. Does each franchise have the freedom to charge whatever they want?

Just an aside: Many offices aren't franchises, but are owned and operated by HRB's retail tax subsidiaries. That doesn't imply that prices in those offices are necessarily uniform across the country, or even within a single state.

[kpangelinan]

W/o disclosing any revenues, I am curious what % of your tax prep revenue was Block offering you?

Is that ok to put on here? They made me sign a disclosure and I haven't read the fine print....but am I ok to put that up? I don't care....I turned it down...just want to make sure I'm not doing anything wrong while some Block people might be reading this.

They were specific about expanding their markets as the Block (green) sign and logo is synonymous with lower income and RAL's; hard for a C-corp who grosses $3 million to walk in their shop and sit in a little cubicle with Mary Jo Lunch Bucket sitting in the next cubicle asking why her refund was $12,000 last year and only $11, 500 this year and can she get it today at ANY cost so she can go shopping.

They were even going to keep my sign and name the same for at least 3 years, maybe more they said.

[AZ-Tax]

Kpangelinan.....what was the offer?

Ahhh....thanks. HR Block last year came into my office and gave me a verbal offer to buy my tax practice as they knew their RAL time was nearing its end and wanted to tap into what I specialize in, Schedule C's, Corporations, and Non-Profits. It was enticing, but not enough for me to give up tax prep in my area yet.

W/o disclosing any revenues, I am curious what % of your tax prep revenue was Block offering you?

[kpangelinan]

. Does each franchise have the freedom to charge whatever they want?

Pretty much yes they all decide what to charge. A few years ago all their fees went up drastically as well as other franchises. Prior to that they had huge fees for Rapid Refund product. The ACORN people were attacking those fees, so they took the fees away from the RAL product and added it instead onto certain forms in the tax return that were normally associated with the RAL. So fees were just re-located into the tax prep fees. From that point on their fees have skyrocketed. Over the next few years, I expect the RAL to be no more and they will struggle to exist because that is where the majority of their income is from not tax prep.

Ahhh....thanks. I was wondering about that. The writing has been on the wall for the last several years about RAL's.....It shouldn't come as a shock to all those who relied on them for income. The local block place in my area, whom I've met with, relied heavily on RAL's to survive and wasn't open for any other business the rest of the year after 4-15. HR Block last year came into my office and gave me a verbal offer to buy my tax practice as they knew their RAL time was nearing its end and wanted to tap into what I specialize in, Schedule C's, Corporations, and Non-Profits. It was enticing, but not enough for me to give up tax prep in my area yet.

[Bonnie]

. Does each franchise have the freedom to charge whatever they want?

Pretty much yes they all decide what to charge. A few years ago all their fees went up drastically as well as other franchises. Prior to that they had huge fees for Rapid Refund product. The ACORN people were attacking those fees, so they took the fees away from the RAL product and added it instead onto certain forms in the tax return that were normally associated with the RAL. So fees were just re-located into the tax prep fees. From that point on their fees have skyrocketed. Over the next few years, I expect the RAL to be no more and they will struggle to exist because that is where the majority of their income is from not tax prep.

[kpangelinan]

To the person who implied that Block pricing is lower, as an employee there and an EA, I don't think that is generally true. When I look at prior year returns done elsewhere, I see no consistent pricing pattern but Block's pricing (in recent years) is not low! Small mom and pop operations seem to me to be lower than Block's, more often than not.

I have been surprised the last few years as their (Blocks) prices have soared....in my area anyways. Does each franchise have the freedom to charge whatever they want?

[origun]

HRB Pricing

To the person who implied that Block pricing is lower, as an employee there and an EA, I don't think that is generally true. When I look at prior year returns done elsewhere, I see no consistent pricing pattern but Block's pricing (in recent years) is not low! Small mom and pop operations seem to me to be lower than Block's, more often than not.

[erchess]

No they are paying for what you know

Only the knowledge that gets in your head benefits your clients. You have built a framework of tax knowledge so you know what you do and don't know and can build on what you know as needed by reading what is in our book and other books and on this board. Don't sell yourself short Possi.

[Possi]

To the clients who really need to hear me say it -- " You are not paying for a form, not paying for what I did ... you're paying for what I KNOW.


JAinNC

I love it! Thanks!
But the real truth would be "you are paying me for what TTB Pros know!" Thanks for sharing your wit and knowledge!

[AccTaxMan]

I tell them H&R Block is just across the street and they are required to have an appointment. I also say "Good Luck" on their way out.