What is the proper respose to "How Much do you charge"

[Naveen Mohan from New York]

I get these kind of enquiry a lot and I try to tell people that it is not possible to give an estimate of Tax Return preparation fee over the phone.

I am thinking of telling people that my minimum charge is $ 100.00 but on the average my tax return preparation fee range between $ 200 to $ 300.

Is it a fair response or should I be saying something more or something different.

Thanks

Naveen Mohan

[MsTabbyKats]

I use "I can't give a final price until I see what I'm doing."

If someone persists, I'll say "Based on what you're telling me..about $X, but if there are differences the price will change."

If you use the word $100.....they will forget you said "minimum"....,,and then say "But you said $100" when you give your price.

[Yardley CPA]

The proper response is..."do you also ask the doctor or surgeon how much they charge??"

The response I give is..."it depends." It depends on how complicated your return is. It depends on how many forms are required. It depends on how many state returns need to be prepared. It depends. Give me a copy of your prior year return to look over and if all is relatively equal I can give you a general idea of what the cost may be. That's what I normally say.

[Jack from Ohio]

"$2,000.00" Could be less depending on what you have in your return.

It runs off those that are only shopping price. I do not need those clients.

[Gail in Virginia]

I sympathize that clients want to know if they can afford to pay me before they hire me, so I will try to give them a range. I will also offer to give them a price for the previous return so they can tell if I charge more or less than their previous preparers. But in the end if they can't trust me to give them a fair price how can they trust me with their financial information?

[Jack from Ohio]

My red flags go up when how much I charge is the first question. Not if I can handle their situation, know what I am doing etc.... People who would choose me based on price will run to someone else next year that charges less.

I had a phone call a week ago...

Her: "Is this Jack that does taxes?"

Me: "Yes, how can I help you?"

Her: "Do you do taxes with just my last paycheck stub?"

Me: "No. That is illegal and..."

Her: "Thank You. 'click'"

[Mr. Pencil]

it is not possible to give an estimate of Tax Return preparation fee over the phone.

I thank them for calling. I explain that my office handles the complete range of federal and state tax work, so the fee depends on the complexity of the return and the forms required. I say that some clients have told me our fee for a simple return is lower than the national chain, but we do not compete on price. I tell them we are a year-round office. I ask them for an appointment without charge to see whether we are a good fit, and promise a guaranteed maximum fee at that time based on the prior year return.

[RitaB]

I think "it depends" is a good start, and where you go from there also "depends" on whether you want or need new business. And, I'll be the first to admit, that I have been known to answer this question differently on a Tuesday than on a Monday or a Friday. If I think the caller just really doesn't know how else to begin, I tend to answer by asking THEM questions to get a feel for what they need and whether or not they are really shoppers. Let's be honest, if you are not self-employed, you sometimes don't realize how frustrating and difficult to answer some questions are. They are probably on somebody's clock getting paid to talk, and I'm not.

[JohnH]

I think "it depends" is a great answer.

If they keep insisting on a number, give them one so high they might need Depends.

[Terry D EA]

I agree totally that it depends is a great answer. There is no one size fits all in this business. I have gotten caught in the past giving a quote for a return and when the client shows up it is hard to explain that because they didn't disclose all of the forms they needed the price just went up.

[Catherine]

My first response is "It depends" closely followed by inquiries about the complexity of their returns.

I have noticed over the years that folks will *always* say they have a simple return -- then show up with 300+ stock trades and two rental properties, and be ticked off that my in-person price is higher than what was quoted by phone. So now I won't give a price until I see last year's return -- but will say that I don't compete on price and that my return prices have run the gamut from a low of $150 to over $1,000 - depending on how complex the return is.

[JohnH]

If it's clear they are a price shopper, you could always have a little fun with them.

YOU: "I can see that this conversation is going in the direction that I must charge for answers to questions. The answer to the first question is free, but there's a charge for answers to every question afterward".

CALLER: "How much do you charge per question?"

YOU: "$100 each. What's your second question?"

[michaelmars]

if you have to ask then you can't afford it.

how about "I will charge you what I believe is fair and justified after I prepare your return, you can agree and pay me, or you can pay me what you think its worth and go somewhere else next year. In either case you get my best work on your return and you get a price you can live with"

[mcb39]

Surprisingly, I have very few clients who ask about pricing until after the interview. There are even cases when I have to say "This is going to cost you approximately $............! I just want you to be sure that you want to leave this with me and that we understand each other. I have never had anyone pick up their papers and leave. I know many of you will say that indicates that I don't charge enough, but if I am happy and the client is happy; that is all that matters.

[joanmcq]

I've had a lot of price inquiries over the past few years, mostly because I've gotten a lot of new clients that haven't had professional tax prep before and really had no idea what it cost. I tell them I can't give an estimate until I understand the complexity of their return. I've only had one of those whose 'few' stock sales turned out to be closer to 100. And the number of actual sales was less, but the way the broker presented the sales required I enter purchase lots for a lot of them, not to mention ST vs. LT.