Fee increase

[Matt Sova]

Fees

I raise my tax preparation fees every single year. Also, I never send a letter out stating that. Last time I checked, the gas station I go to did not send me a letter stating that the cost of gas went up 10 cents a gallon.

[equinecpa]

How do you calculate your fees?. Do you base your fee on time or calculate a form amount. I have set hourly rates for different services. When I bill I'll either write the bill up or down depending on my perceived value for service.

[RitaB]

Everything goes up

I raise my tax preparation fees every single year. Also, I never send a letter out stating that. Last time I checked, the gas station I go to did not send me a letter stating that the cost of gas went up 10 cents a gallon.

I find that every time I go to the dentist or doctor that is true as well.

Hey, one of my PITA clients increased his own fee the other day. Came in late for me to do his 2010 return. Listed his 2009 tax prep fee as $25 higher than I actually charged him. I figured the least I could do is make it a reality for him.

[geekgirldany]

My biggest mistake that I made was underpricing myself when I first started out and 10 years later I still am making up for that mistake. I learned over the years people do not always respect the cheapest places and most people do not want the cheapest price anyways they want good service and someone that is up to date on all current tax laws.

You've got that right. I am in the same boat. Under priced myself 11 years ago also. I went up $10 on everyone two years ago and I had several pitch a fit. I told them if they can not afford my prices then go to a franchise preparer or anyone else and see if they can get a better price. I am going up 5% on a client by client basis.

Last year I had one complain because I went up $15. "Why do you charge so much when I already have everything wrote out for you in a binder. All you have to do is type it into your tax program". I proceeded to explain to her that I can not only go by her numbers. I have to go by the forms they have to prepare the return, I then look at her binder, then I go back and recheck.... then go back and recheck. How I have to take continuing education every year. I also added she can go to someone else if they feel like my pricing is not worth paying. She started apologizing and said she did not know it was that complicated and took so long to prepare. ??? Geez! Her husband told me they were very happy with me and gave wife a look.

[Jiggers]

Several years ago I had a client that usually only filed a 1040A. For many years.

Then she decided to be self-employed and she also received an oil and gas lease. Schedule C, SE, and E were now required on a long form 1040, and not a 1040A.

She blew a gasket when I raised her fees considerably.

But when I explained that when she went to the local supermarket and purchased one bag of groceries for $25 (way back when) and then the next time she went and purchased 3 bags, that she couldn't expect to pay only $25 again, she understood. Simple explaination for simple folks!

I raise my fees every year. I lose more clients to the funeral homes than to competitors.

[Burke]

A lot of people think that since we use computers now, we don't really have to do a whole lot.

[MAJ]

I Love you guys!!! 8-)

Okay - my buck 3-80....
Cost of living 3.9% That my friend doesn't even cover the price of gas!! And since everything is delivered by GAS in some fashion - Guess what. Increases responded accordingly.

Do you shop in the grocery store.. 3.9% is what they are telling you. Can't figure that out. Lots of stuff has gone up 30-50% over the past year. My salary hasn't. In fact I know many of my clients have NOT gotten a raise in 2 years. Look at Social Security.
I'm not buying this 3.9% at all . Numbers are just that and if ANYONE knows they can be manipulated to say what we want them to say.

Utilities in NJ are up significantly over the past 2 years. More than twice a year Electric was granted 10 & 14% increases. Natural Gas wasn't far off. Funny some sited higher fuel prices as part of their reason. Those guys -GET RAISES - PERIOD!

Now let's look at our world.
IRS Registration $63.00
Fingerprinting (on the way) $100.00
NY State $100.00
Continuing Education {guess-timate} $300.00 {conservative}
That's not going anywhere (am I off my rocker).
---------------
$550.00
That's on top of our normal expenses.
And Yes - Paper and Ink have gone way up. What hasn't. Folders etc....

I've got to raise the rates this year... I think 10% is FAIR. Of course - We know our clients finances better than some of them... Those that are hitting it rough I may cut them a break. Usually - when I do that I make a plug for referrals.

See my next post on Cost Saving Ideas and Suggestions...

[BOB W]

A lot of people think that since we use computers now, we don't really have to do a whole lot.

I tell them that if I had to do your tax return by hand your bill would be 3 to 4 times as large......................so we both win because I use a computer.