This is an outgrowth of the "Why switch from QF" thread, but enough of a separate discussion that it should warrant its own thread.
The plot involves one well-financed corporate entity fresh from entering the succinct tax publication industry. In the other corner, the upstart company who had its cheese taken away when the gargantuan entered the scene. The question from some appears to be "Why take a chance? Place your money on the big company with big resources and don't risk a Non-delivery from a new company with undisclosed and unproven capital?" The old "Bigger is Better" argument.
Before we rhapsodically swoon to the siren song of the corporate interest, let's consider some of the "Bigger is Better" scenarios in your home town.
1. Sizzlin' Sirloin versus "XYZ Steakhouse." This is a misnomer for your town, perhaps, but every town has a mom-and-pop steakhouse run by Americans of Greek, Italian, French, Oriental, or maybe just American descent. Who has the better steak? You also walk through a processing line to pay the cashier at one place, and sit down to service at another.
2. General Motors Service Department versus your Local Mechanic. The Service Department has tried to run the Locals out of business with things like OBD-II, purchasing power, and the like (a separate discussion in itself). You go to the GM Service Department, who has maybe one guy who really knows your Buick. But instead, you get a 19-year old who hooks your engine up to a machine, and reads a print-out. He reads it just like McGuffie's Reader - right down the list, and chooses his diagnosis from 3-4 possibilities. Over the next two weeks, you get all these possibilities performed on your Buick, and a bill for $1000. GM has met its goal - i.e. profit.
Then you give up and take your car to the local mechanic who listens and tells you, "It sounds like the pulley motor to me," and proceeds to fix your car for $250. The mechanic has met his goal - service plus profit.
3. AOL versus your local ISP. No doubt, AOL has had all the resources for years. But you call them, and the technician from India walks you through the steps of setting up a new instance of client on your PC rather than really solving the problem that was created to begin with. Your local ISP is fighting for his life to get upgraded equipment from BellSouth, SWB, or Verizon (depending on where you live), but is furnishing better service for 35% less.
Does Bigger equate to Better? How about another example:
4. In 1979, Bill Gates offerred to sell Microsoft to IBM for $2 million. They laughed at him. In 1986, IBM offerred to buy Microsoft for $50 million, and threatened to run him out of business if he didn't sell. He laughed at them.
Bad example, though. There are always rags-to-riches stories with geniuses like Gates, but I said it would have to be in your home town, right?
5. Jackson-Hewitt versus YOUR TAX PRACTICE. And I guess the same thing could be said about HRB, but at least they have quality control in place which keeps sloppy returns from getting out into the public, and SOME knowledgeable tax preparers. No doubt, the big companies have resources -- they are staples in the tax preparation business, have an office on the corner in every town, can write a customer for (part of) his tax return on the spot, and convince people via TV commercials that they are the ultimate authority on taxes.
We have some HRB people who post, and I almost must apologize to Gary Marmer who is very sharp and hardly your typical HRB preparer. But over the years, I have saved clients thousands and thousands of dollars who have come to me from HRB. I have dozens of former HRB customers, and they have a few of mine -- namely those who can't wait 10 days for their refund, and are enamored by the resources of a company who can write them a check instantly.
A couple friends who are managers at Block tell me privately they do NOT want their people tied up for hours or days on such things as Partnerships, S Corps, Estates, etc. and that their practice is geared to short forms so they can turn the money.
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Does Bigger = Better? Well, in all honesty, sometimes they do. Their enhanced purchasing power runs the smaller local companies out of business, so you see more Chain stores, Fast Food restaurants, etc. Do you get the same service that you used to get out of the corner market? I doubt there is ANY among the readers who will say they do.
Will Bigger run the new TTB out of business? Those of you who have compared prices have seen QF selling for lower prices than it has in years. What is their purpose for lowering their price? Think about it. They either want to use their resources to run competitors out of business, or they think they will make tons of money by selling you five of their books when only one or two from TTB will suffice.
Yes, the verdict has not yet been returned on this saga. I'm anxious to see how this unfolds by next April, as the ordering season is now full upon us.
Thanks for listening. Ron Jordan, Manchester TN
The plot involves one well-financed corporate entity fresh from entering the succinct tax publication industry. In the other corner, the upstart company who had its cheese taken away when the gargantuan entered the scene. The question from some appears to be "Why take a chance? Place your money on the big company with big resources and don't risk a Non-delivery from a new company with undisclosed and unproven capital?" The old "Bigger is Better" argument.
Before we rhapsodically swoon to the siren song of the corporate interest, let's consider some of the "Bigger is Better" scenarios in your home town.
1. Sizzlin' Sirloin versus "XYZ Steakhouse." This is a misnomer for your town, perhaps, but every town has a mom-and-pop steakhouse run by Americans of Greek, Italian, French, Oriental, or maybe just American descent. Who has the better steak? You also walk through a processing line to pay the cashier at one place, and sit down to service at another.
2. General Motors Service Department versus your Local Mechanic. The Service Department has tried to run the Locals out of business with things like OBD-II, purchasing power, and the like (a separate discussion in itself). You go to the GM Service Department, who has maybe one guy who really knows your Buick. But instead, you get a 19-year old who hooks your engine up to a machine, and reads a print-out. He reads it just like McGuffie's Reader - right down the list, and chooses his diagnosis from 3-4 possibilities. Over the next two weeks, you get all these possibilities performed on your Buick, and a bill for $1000. GM has met its goal - i.e. profit.
Then you give up and take your car to the local mechanic who listens and tells you, "It sounds like the pulley motor to me," and proceeds to fix your car for $250. The mechanic has met his goal - service plus profit.
3. AOL versus your local ISP. No doubt, AOL has had all the resources for years. But you call them, and the technician from India walks you through the steps of setting up a new instance of client on your PC rather than really solving the problem that was created to begin with. Your local ISP is fighting for his life to get upgraded equipment from BellSouth, SWB, or Verizon (depending on where you live), but is furnishing better service for 35% less.
Does Bigger equate to Better? How about another example:
4. In 1979, Bill Gates offerred to sell Microsoft to IBM for $2 million. They laughed at him. In 1986, IBM offerred to buy Microsoft for $50 million, and threatened to run him out of business if he didn't sell. He laughed at them.
Bad example, though. There are always rags-to-riches stories with geniuses like Gates, but I said it would have to be in your home town, right?
5. Jackson-Hewitt versus YOUR TAX PRACTICE. And I guess the same thing could be said about HRB, but at least they have quality control in place which keeps sloppy returns from getting out into the public, and SOME knowledgeable tax preparers. No doubt, the big companies have resources -- they are staples in the tax preparation business, have an office on the corner in every town, can write a customer for (part of) his tax return on the spot, and convince people via TV commercials that they are the ultimate authority on taxes.
We have some HRB people who post, and I almost must apologize to Gary Marmer who is very sharp and hardly your typical HRB preparer. But over the years, I have saved clients thousands and thousands of dollars who have come to me from HRB. I have dozens of former HRB customers, and they have a few of mine -- namely those who can't wait 10 days for their refund, and are enamored by the resources of a company who can write them a check instantly.
A couple friends who are managers at Block tell me privately they do NOT want their people tied up for hours or days on such things as Partnerships, S Corps, Estates, etc. and that their practice is geared to short forms so they can turn the money.
----------------------------------------------------------------------------------------------------------------------
Does Bigger = Better? Well, in all honesty, sometimes they do. Their enhanced purchasing power runs the smaller local companies out of business, so you see more Chain stores, Fast Food restaurants, etc. Do you get the same service that you used to get out of the corner market? I doubt there is ANY among the readers who will say they do.
Will Bigger run the new TTB out of business? Those of you who have compared prices have seen QF selling for lower prices than it has in years. What is their purpose for lowering their price? Think about it. They either want to use their resources to run competitors out of business, or they think they will make tons of money by selling you five of their books when only one or two from TTB will suffice.
Yes, the verdict has not yet been returned on this saga. I'm anxious to see how this unfolds by next April, as the ordering season is now full upon us.
Thanks for listening. Ron Jordan, Manchester TN
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