Raising Fees?

[Donanita]

And explaining this

is like pulling teeth from a hen.


That’s not much different than all of our cash basis clients that want to take a bad debt deduction for not getting paid by a customer.[/QUOTE]

[JON]

How much to charge?

Whatever the market will take... If you go under, you will not get a contibution. I you go to high the customer will not return.

[Matt Sova]

Good to be back

I did not forget about all of you, I have just been very very busy and no time to post. Snag, if you come to Michigan for that beer, I will buy.

Matt

[oceanlovin'ea]

Rate increase

I charged my return clients $5 more last year and new clients I started at a higher rate, I think it was $10 or $15 more. I wasn't sure what would happen but no one complained.

I had not raised my rates in 3 years so this year I probably won't go up again. I don't want to increase my fees every year.

But new clients I will start at a higher rate again.

I probably should charge my bookkeeping clients more, but I charged based on the time that it takes me to do their work.

I am in Polk County Florida. It is one of the counties with a large lower income population. There is a lot of agricultural jobs and other minimum wage jobs. So like Black Bart, I am not comfortable charging high prices to my clients.

My office is in my home so I don't have the overhead expenses of rent or electric, etc.Sorry I seem to be rambling. Guess I need some sleep.

[JG EA]

Something lacking.

Beg pardon, JG, but I just have to say that there appears to be a certain something...oh, I don't know...lacking in that "New Math" practiced by your employer.

Yes, of course. It speaks to the getting something for nothing mentality, to the getting my fair share no matter what mentality, to the not quite so open so as to jeopardize business mentality. I relate this not to condone, but for interest. I should have known then that numbers were facinating to me. This was facinating from a numerical angle and only mildly interesting from a human relations angle.

JG

[Black Bart]

Matt Sova: The prodigal son returns

I did not forget about all of you, I have just been very very busy and no time to post. Snag, if you come to Michigan for that beer, I will buy.

Matt

Nice to see you back. Now, in the unlucky event that our resident intellectuals--Bees, Beau, & Snag (Koss has defected) get run over by a truck, we'll still have somebody to fall back on.

Say, would you mind if I came up there with Snag and had a couple of snorts with y'all (never mind the beer--we make our own stuff--I'll bring you a Mason jarful)? Also, if it's not too much trouble and doesn't put you out, we'd like you to show us how you take those chrome-plated sticks and whop a little-bitty ball across that Michigan stock pond to the Wisconsin side (no wonder you have to keep tryin' until nine or ten at night)? It sounds like fun, but still and all, I'd feel better doin' it up there after dark, since folks around here make fun of you if you're still playin' out in the yard after you turn nine or ten.

[Safire]

rebates?

I raised my fees last year about 25% but I gave a 10% discount to help ease the blow and explained that "next year" the price would be "such & such". I didn't have too many complaints but fear a backlash this year. ( And 25% of practically nothing isn't much. I started out trying to compete price wise with a large firm that I had worked at for almost 9 years and found out the first year that, that would not cut it. )

I know I'm worth what the fee is, actually worth way more but this will be only my third tax season out on my own and I can't afford to lose anybody.

I was thinking this year to offer them a rebate on every new customer they brought me. I thought I would offer them as many business cards as they wanted to take and have them write their name and address on the back and for every new customer that brought one in, they would get $5 at the end of tax season.

This way, if price is a huge issue to them, they can save some money by sending me some new clients.

Any thoughts? Anyone else ever try this approach?