Consultation fees: To charge or not to charge?

[Black Bart]

I swear if I wasn't already over-the-hill, I'd sign up for law school (dang business degrees are worth exactly zero around this burg). Those guys make more money accidentally than I do on purpose. Attorney friend tells me he charges $15 for anything-to-15 minutes, next $35, and then goes on up when it become "serious" time (30 minutes and over).

I surely need somethin'. My rogue's gallery clientele experience yesterday is pretty typical/pitiful.

First guy: Can you draw up a will? How 'bout a purchasing agreement? (I can, but I won't. People are too picky and ticky about their "legal stuff." Besides, I worry bout "practicing law" complaints).
Second guy: I've been charging sales tax on my horse feed sales for the last two years. Should I? (Now he asks me. Unsure; say I'll call Little Rock, find out, and get back to him).
Third guy: This is my grandfather's railroad pocket watch. How do ya like it? (Fine, just fine -- required admiration/discussion time -- 30 minutes).
Third guy -- rerun: These 1925 pictures are of my mother's family. See anybody you know? (No.)
Fourth guy: I need a copy of '06. I know it's probably in a drawer somewhere in the house, but I'd have to look through all of 'em and I knew you'd have it handy. (Yes, of course; why should you be inconvenienced?)
----- The sum total fees collected for all this junk was zero.

Anyway, I've put up and taken down signs (THERE IS A CONSULTATION FEE) over the years according to my whim, but it's always lots of trouble charging my "spoiled" clientele from whom I'm used to hearin' (if they're the generous type) "What do I owe you" and they're used to hearin' "Aw, nothin" (yes, yes, I know -- I deserve your scorn for this shamefully soft approach to a business situation). So, a consulting sea change is comin' up. I highly resolve that my current deplorable situation shall cease, desist, and perish from the earth. Startin' right away, I'm chargin' a staggered and staggering (for this neck of the woods) fee structure of whatever the goin' rate is accordin' to y'all and the following poll results.

[WhiteOleander]

We charge for copies. Especially if they say they're too lazy to look for it. But, if someone calls and is trying to get a medical bill reduced because of low income or something like that, we will waive the fee.

When we tell them they received a copy when it was originally done, they usually say that it is in storage. I have come to the conclusion that if everyone that says that was telling the truth, there would be nothing in this town for miles and miles except "You Store It" places.

We have a few clients that are just lonely and an excuse to come in for advice is a social visit for them. One even brought us a pie.

[Black Bart]

Misery loves company,

[QUOTE=WhiteOleander

...a few clients that...come in for advice...is a social visit...One even brought us a pie.[/QUOTE]

so I'm sending my railroad watch guy to you. What kind of pie? I've got one that brings us about five-ten pounds of frozen catfish every year (if he doesn't owe more than $75 tax).

[Larmil]

I

<portion deleted>

First guy: Can you draw up a will? How 'bout a purchasing agreement? (I can, but I won't. People are too picky and ticky about their "legal stuff." Besides, I worry bout "practicing law" complaints).
Second guy: I've been charging sales tax on my horse feed sales for the last two years. Should I? (Now he asks me. Unsure; say I'll call Little Rock, find out, and get back to him).
Third guy: This is my grandfather's railroad pocket watch. How do ya like it? (Fine, just fine -- required admiration/discussion time -- 30 minutes).
Third guy -- rerun: These 1925 pictures are of my mother's family. See anybody you know? (No.)
Fourth guy: I need a copy of '06. I know it's probably in a drawer somewhere in the house, but I'd have to look through all of 'em and I knew you'd have it handy. (Yes, of course; why should you be inconvenienced?)
----- The sum total fees collected for all this junk was zero.

<portion deleted>

.

First guy - I would just say no.

Second guy - I would give him the phone number.

Third guy - I have a multi person office who look out for each other in these cases. I would suddenly get a very important phone call that I would have to take.

Fourth guy - I charge a $10.00 fee (with exceptions).


Larmil

[DTS]

Fees

Bart,

No consultation fee for the promise of new clients, but have changed my "no charge" way of doing business to getting paid for my "extra time" fees.

I just had this conversation with a friend a couple weeks ago. After a 3-week stretch of doing this or that for clients, taking up hours of my precious time. Like you, I looked in my wallet and there was $0 from all this work that I try to do as a "service" for my clients.

After a very exasperating day, I started to set fees, high fees for my "extra" work. I talked to a friend who has a fantastic way of wording things to clients in situations like this. My friend suggested I say something to the client like, "let me take a look for you and if I can take care of this for you in 10-15 minutes, I won't charge you". I thought this was an excellent way of putting this to the clients who expect us to do this extra work for nothing (I have a problem with "social skills" when talking to people! A little too short and to the point, I guess).

Of course, no one's called since I set my fee schedule, until an hour ago, so I will try it out on them.

Dennis

[RLymanC]

Consulting

I'm always being told that I am to benevolent, I tend to agree.

I'm happy to see clients in the off season if they require any help or need a copy of previous years taxes.

I gladly supply my time and copy services at no charge.

I should mention that I operate a home office with no employees during the off season. My overhead is my office ceiling and it doesn't leak at the moment.

Just had one come in this morning that will be retireing at the end of the year and wanted some advice on tax withholding. Gave him my recomendation, had a nice visit and he said "see me in a few months."

Charging him for my service really did not enter my mind.

[joanmcq]

I charge $95/hr for consultation, for example the possible client that wants to know if her settlement will be taxable and brings in file cabinets of docs for me to wade through, and also wants info on cancellation of debt.

Current client, ex brother in law whom I like and don't get to see much, $25 for highway use tax form and a half hour to hour of jabbering/gossip catch up, and me telling him he needs an IRA. Phone calls and what not, free. Tax planning at current hourly rates (see above). Anything that has to do with testafying in court as an expert witness..at least $150/hr or more.

[WhiteOleander]

so I'm sending my railroad watch guy to you. What kind of pie? I've got one that brings us about five-ten pounds of frozen catfish every year (if he doesn't owe more than $75 tax).

No please. No more "Just dropping in folks".

The pie was Lemon Meringue. I ate a bite or two. But my general rule is if it a'int chocolate, it a'int worth it.

I'll pass on the catfish too.

[JAinNC]

First 30 minutes

for potential client is no charge. Over 30 minutes is $40 per hour.

[veritas]

I use the

IDOMM method.


(It depends on my mood)

[erchess]

Consultation Fees

I charge to prepare forms and to represent. Although my preparation fee is per form it works out to the same $75 per hour that I charge for representation. If I had to appear in court as a witness for a client I would definitely want $75 per hour for my preparation time and $200 for every day or $100 for every half day or less. I do not charge for tax planning if I did the previous return. I used to not charge for tax planning or extensions in any case but clients were getting me to do that then never calling about their returns so I started charging $100 for planning or extension but making it clear that this sum will be credited toward the price of the return. One fellow seemed so disorganized that I doubted I would hear from him again and I charged return price up front for the extension. He eventually met with me to complete the return but he didn't have social security number on the owner who is contributing money and so I still have not filed the return. I have my fee and I will file give him the return to sign and mail within two of my business days of his giving me the missing information. I do charge my representation fee but minimum of $200 to put a tax opinion in writing other than an opinion that the income a person has told me about is insufficient for them to be required to file a return.

I do my work in my clients' homes and I continually consider having a minimum fee for walking in their door. However what I currently do is "guarantee satisfaction" at the time service is provided. In other words if they are not happy with the return I believe to be correct or if they are not happy with what I propose to do in terms of representation, I will go away with no fee and also of course no benefit to them beyond whatever they can remember from the meeting.

[dsi]

My consultation fee is $150/hr. I've found that when I didn't charge, my clients didn't consider my advice worthy. About 11 years ago I began charging a consultation fee and my clients were quite a bit more interested in my advice.

For $45 I burn 3 years of a cient's tax return onto a CD. For $25 I will e-mail a copy of a client's tax return to whomever they wish (bank, lending institution, etc). Otherwise, a paper copy of their tax return will cost them $45. Every client that has requested a copy of their return has been very happy with my fees.

[JoshinNC]

Depends on who they are and what they want

For new/potential clients they get a 30 minute free consultation. I will give no tax advice or planning during this meeting. It is simply a get to know each other meeting. I explain up front that my personality can't possibly mix with everyone so there will be potential clients who won't like me and vice versa. I'd rather get that out of the way up front than have to "fire 'em" in 6 months. After that I charge my regular rate of $75, except for representation work which is $105.

All existing clients get 1 30 minute phone, email, office consult at any point during the year for any reason. If they want to check withholdings that's what we do. If they want to discuss retirement planning that's what we do. If they want to talk about my Mississippi Mud cake recipe that's what we do. After that, it's $75 per hour. When they leave after just 30 minutes I say "Ok , that was your free 30 minutes. Next time I will charge my normal hourly rate." That way there's no question. I also started taking credit cards last year for those "I don't have my checkbook/cash" folks. Most everyone has a debit card.

[RJM]

YES, add to return fees

For prospective clients, initial visit is no-charge. For accounting clients, this can range up to 4 hours. For tax-only clients, usually an hour. After that, routine tax advice $100 to $120 per hour added to tax return invoice. For larger, more involved consults, I bill currently at usually $120 per hour, but I give many freebies depending on mood. I agree with earlier poster saying that charging for your time is generally viewed positively by clients. It also helps weed out time-wasting stupid questions.

[Lion]

Time

I tell potential clients that we can "meet & greet" and that includes answers off the top of my head; for research and/or computations my hourly rate applies, but I'll count $X toward their tax preparation bill. For continuing clients, it's pretty similar: quick answers are always free, but lengthy research and/or calculations will be $Y per hour -- that depends on my perception of their needs and how much I'll have to study. Sometimes, I say that to them and ask for payment now or offer to add it to their next bill. For the ones I know and know what to expect in the way of needed advice throughout the year, I've built it into their tax preparation bills and don't have to say anything to them until/if their need for my time increases. I try to build it into tax return fees and/or monthly bookkeeping fees so they actually do call me with questions and concerns and don't wait until next April to tell me what they did.