Late season price-shoppers

[geekgirldany]

I call MacDonalds and ask,"How much do you charge for a hamburger?"
Then I call Burger King and ask them
Then I call Whopperburger and get their price.

I tell many clients: "This is not Burger King, you can not have it your way."

[DMICPA]

Watch out for new clients at this stage

Had a recommendation from a very complicated client. The "new client" kept wanting to know how much. Before giving them a range, I went through the prior two years returns (Self Prepared) and spent 2.5 hours on a conference call helping them through the Turbo Tax interview because they had something like $325,000 in Stock Options. Finally got them a managable return and told them my fee would normally be $600 but only would charge $200. New client said " No, You did not help me that much." I pointed out the calculation of stock options, the major AMT error they had, the State capital loss was wrong etc. They said they would not pay $200, maybe $150 and they want me to help their friend who has a similar return. Still waiting for the money.

I was angry and disappointed. Since they were a referral, I trusted them. Big mistake. Probably won't get paid at all.

If they do not pay, I will tell my client about this referral and get them to lean on them to pay.

This still bothers me. I should not have been so accommodating to them. Referrals don't mean quality clients all the time.

Grrr.....

[geekgirldany]

Did you help them through the Turbo Tax interview for the 2012 return?

I've had people call and want to bring their laptop for me "help" them with turbo tax. Always a no on that.

Starting last tax season, I would get half down on what I thought it would cost for new and old clients with more complicated returns. Atleast I would have some money for my time.

[erchess]

I do not discuss fees over the phone

I tell them that I need to see everything that they have in order to give a price, that I will come to where they are and give them a price and go away with nothing if they are not happy. I also tell them my prices are typical of what is out there other than the storefront operations which are cheaper. (There's no sense in trying to sell them on my fees if they think the storefront operations overcharge.) I also ask them if they believe that alll tax professionals can handle their return or do they believe that there are differences among us in skills and customer service. My experience is that most people who make under 60K a year think that there are no differences between tax pros worth paying for. I seek to bring into my practice people who understand that there are differences and are willing to pay for the better sorts.

A reason I think that people view our services as a commodity is the fact that the IRS loudly touts "best practices" for our industry and then by its actions clarifies that these are nothing but minimum standards for those wishing not to be sanctioned.

[DMICPA]

Tax season fleecing

Ok, I get a referral and I review the prior years, make careful notes on carryforwards etc. I talk to the potential client by phone. She tells me of her struggles and low income and how tough the economy is. I tell her around $250.

Now comes the tax stuff. Two Schedule Cs, and estate K-1, a refinancing, Pension rollovers, some stock transactions with no basis listed.

So, I get through the above. Way over my quote. Now she calls and wants to "review" the return. I have to copy it send it to her. She calls and says she did not give me all the Schedule C expenses because she still owes some tax so here comes another group of expenses. Than more phone calls and more expenses until the SE tax is gone.

I mention that I already have $800 of time in this return but she politely points out that I quoted only $250 and she is entitled to a correct return no matter how may re-runs it takes.

How can I keep this from happening again?

[geekgirldany]

I hate to say this but do not let sob stories lower your quote. I use to let this cloud my judgement but unless I knew the client extremely well, I will not lower my price. I purchased marketing training for accountants and hope to get more into it after the tax season. One of the things the instructor says to do is no quotes. Erchess is handling quotes the correct way... not to give them at all. I still find myself giving them but trying my best to stop. You have to stress to the client that you are worth the price no matter what it might be. Focus in on your worth not the tax return service.

I would never email them a review copy of the tax return. Tell them you have the return finished and it is time to pick it up. If after you tell them the out come on the phone they start throwing more expenses at you, I would consider handing it back to them or asking for receipts, bank statements, etc for all the expenses.

Plus if I had a client politely remind me of what I quoted them... I would politely remind them what extra work I had to do. If they will not budge then give it back to them. I would rather not have them as a client/headache then the money.

[Black Bart]

Gosh, I hardly know where to begin,

Had a recommendation from a very complicated client..."new client" kept wanting to know how much. Before giving them a range, I went through the prior two years returns (Self Prepared) and spent 2.5 hours on a conference call helping them through the Turbo Tax interview...they had..$325,000 in Stock Options...told them my fee would normally be $600...New client said " No, You did not help me that much...said they would not pay $200, maybe $150 and they want me to help their friend who has a similar return...

First, never help anybody do TurboTax. They're indirectly asking you to help them beat you out of your fee...which is brassy as hell, if not completely nuts (both parties). Other warning signs of a Leona Helmsly admirer are they: have lots of money, are still cheap enough to use TT, are more curious about your fee than the tax owed. Having already told them $200 I guess I'd stick with it, but if they didn't pay it right now jiffy-quick, then they, their $150 offer, and their "friend" could drop dead because it's all going to be downhill for you from here.

...I talk to...potential client...tell her around $250...she...wants to "review" the return. I have to copy it send it to her. She...says she did not give me all the Schedule C expenses because she still owes some tax so here comes another group of expenses...I mention that I already have $800 of time in this return but she politely points out that I quoted only $250 and she is entitled to a correct return no matter how may re-runs it takes.

Tell her not so politely that she's wrong -- that you told her "around" $250, that quotes are for one normal, ordinary, complete return; not for her "review" and endless reruns until the tax suits her. A few taxpayers routinely pull this ploy (submission of "forgotten" and likely bogus extra expenses until the tax is "right"). If you believe/go along with that (which is risky), tell them there's a fee for reruns. Also I would never send anybody one of my tax returns (draft or otherwise) to play around with -- just tell 'em the tax amount owed.

How can I keep this from happening again?

I think you're going to have to buy a copy of that E-Bay assertiveness training book entitled "Don't Say Yes When You Want to Say No." Sorry; didn't mean to preach, but you've gotta tell 'em upfront how the cow ate the cabbage or they won't respect you (now or in the morning either). Good luck!