BLACK BART Posted January 14, 2016 Report Share Posted January 14, 2016 My first customer wandered in yesterday - older single guy with one factory W-2 and will pick up Friday. My fee will be $75 (our minimum and same as last year) at pickup for this guy. I was just wondering what you guys here would charge for something similar. I know, of course, that locale has a lot to do with it (I'm in AR - "pore boy territory"), but still am curious as to what others are doing. We're the only independent in our small town but have two franchise competitors - Block and Jackson-Hewitt. Our mainline customers are mostly the older, settled type (rent, retirement, interest, small businesses). We start out at around $125 and go up gradually by hundreds and complexity (no longer doing corporations) to $1,200 or so. We now do very few EIC returns, although many years ago we had bunches and JH/Block were our main competitors. But anyway, their fees are much higher than ours regardless of type (they would get at least $200 for the above case). Since our clientele has aged we no longer seem to get their kids/grandkids like we used to and I think that's mostly going to TurboTax, IRS FreeFile, and Block online, due to the younger crowd's generally increased computer-literacy. On that note I just saw my first TV ad for Block online last night - free federal and $9.99 for state. Although I'm not competing for that market segment (the "short-form" bunch) anymore, that's a pretty hard price for Block franchise-holders to overcome and I'll bet they don't like it one bit (the company probably feels the same way). I don't like it so much either 'cause a newbie used to wander in occasionally and we could knock out a $45 fee in 15 minutes - that seldom happens nowadays. I would complain more about customers dying off; a very depressing event from my point of view (to say nothing of theirs ), but the futility is evident and, besides, as John H. once posted: "Despite the high cost of living, it remains very popular". 1 Quote Link to comment Share on other sites More sharing options...
rfassett Posted January 14, 2016 Report Share Posted January 14, 2016 Our minimum fee this year, the fee that will entice me to put my signature on a return, is $200. For the scenario you posted, I would charge that guy $200. Where I work and play, that means, assuming he did not move during the tax year, three returns - federal, state and local. Where I work and play, the state and local do not play off of the federal. I practice in a town of about 5,500 people in what seems to be an area not so different than yours. I do not seek out the type of client you describe - but if he shows up and we do the return, he will pay us $200. And we will not apologize for charging him that/ 3 Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted January 14, 2016 Report Share Posted January 14, 2016 "free federal and $9.99 for state" You can bet no one will walk out of an H&R Block office not paying more than that by the time they get through adding on all the extra charges. They advertise all kinds of gimmicks to get people in and then they stick it to them. 5 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted January 14, 2016 Report Share Posted January 14, 2016 We say we have a $250 minimum, but a client with one W2, standard deduction, no child care, health insurance all year, no IRA, no HSA, etc., etc. would probably be $125-$150. 2 Quote Link to comment Share on other sites More sharing options...
Catherine Posted January 14, 2016 Report Share Posted January 14, 2016 I would probably charge pretty close to your planned fee BUT -- I would put the full price on the invoice and give a discount. People LOVE getting the discount. I get (occasional) thank you letters for the discount. And the client has a better idea of what my services are worth. (I price by the form and have a high per-form charge, so PITA clients and complex clients get no discount. Easier forms - like the elderly lady who does a smattering of translation and has a three-line Sch C - get small to deep discounts.) 4 Quote Link to comment Share on other sites More sharing options...
Bart Posted January 14, 2016 Report Share Posted January 14, 2016 4 hours ago, Catherine said: I would probably charge pretty close to your planned fee BUT -- I would put the full price on the invoice and give a discount. People LOVE getting the discount. I get (occasional) thank you letters for the discount. And the client has a better idea of what my services are worth. (I price by the form and have a high per-form charge, so PITA clients and complex clients get no discount. Easier forms - like the elderly lady who does a smattering of translation and has a three-line Sch C - get small to deep discounts.) What do you label the discount when you list it on the invoice. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 14, 2016 Report Share Posted January 14, 2016 My most common label is Loyal Client Discount. I also use Family Discount for kids of clients if easy. (Some of the college kids work in three states and have a 1099 for some work and a K-1 from the trust grandma set up, so some pay full price or don't get much of a discount.) If I quote a new client a price and miss it by only a little, I'll use New Client Discount; but if it's a lot different than what they told me or they bring in new documents after starting, I call them with the new price before I continue. I also give a Referral Discount to continuing clients who send a new, paid client (so the discount might end up on the following year's return prep). I sometimes use something specific to a client, such as the one I beg to go on extension for my benefit: Extension Discount. Had a couple who got their documents more organized, but don't remember what I called that; I think I'd added a Bookkeeping Fee in prior years so removed it when their records improved. 1 Quote Link to comment Share on other sites More sharing options...
RitaB Posted January 15, 2016 Report Share Posted January 15, 2016 10 hours ago, BLACK BART said: My first customer wandered in yesterday - older single guy with one factory W-2 and will pick up Friday. My fee will be $75 (our minimum and same as last year) at pickup for this guy. I was just wondering what you guys here would charge for something similar. I know, of course, that locale has a lot to do with it (I'm in AR - "pore boy territory"), but still am curious as to what others are doing. I am right with you BB. I'd charge $65, no state return, also poor as church mice in Tennessee. 2 Quote Link to comment Share on other sites More sharing options...
Catherine Posted January 15, 2016 Report Share Posted January 15, 2016 2 hours ago, Bart said: What do you label the discount when you list it on the invoice. "Forms and Schedules Discount" if I discounted forms/schedules. "Professional Courtesy" when I bill for my free first half-hour consultation. Other discounts might be senior, military, family multi-return (folks bring in the college kids' so we don't get the rejects after the kids screw up and claim their own exemption). Those last might be percentages or dollar amounts depending on the client and how cooperative they have been. 3 Quote Link to comment Share on other sites More sharing options...
Catherine Posted January 15, 2016 Report Share Posted January 15, 2016 As Lion has done, I have also added "return reprint" fees when clients showed up and asked for a second copy (no fee if we know ahead of time), "bookkeeping fees" by the hour, and all manner of additional fees when required to really show the client what they cost themselves in carelessness. If that doesn't work after a year or two, I fire them. Just fired a client of a decade, today, for giving me crap data and not responding to requests for clarification. Then wanting me to meet on a weekend because they are going on vacation! Uh, NO. 6 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 15, 2016 Report Share Posted January 15, 2016 I always used "full price first, then, less discount" not only so that you don't lock yourself into a low price for the future, but because you don't want them telling other future clients the low price. You want referrals but based on your competence and service, not only on price. 5 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 15, 2016 Report Share Posted January 15, 2016 On 1/14/2016 at 5:38 AM, BLACK BART said: (I'm in AR - "pore boy territory"), but still am curious as to what others are doing. We're the only independent in our small town but have two franchise competitors - Block and Jackson-Hewitt. Just curious, BB, where in AR? I'm in CA now, but was in Jonesboro from 75 to 2012. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted January 16, 2016 Report Share Posted January 16, 2016 unemployed, young couple just had a baby, sickness, I give discounts all the time but don't label them as to why. They know. I would rather get the "thank you call or note" than the extra $20-50 from people who I think deserve or need. 2 Quote Link to comment Share on other sites More sharing options...
SaraEA Posted January 17, 2016 Report Share Posted January 17, 2016 We are in a high cost of living area. Many clients are affluent, some decidedly not. Our minimum is $100 for someone with one W2 or 1099R and maybe some bank interest. Dependents are $50 with only one W2, $75 if more than one, full price if out of state W2s or investment income in the mix. We discovered that the person we bought the practice from was still charging dependent rates for "children" who had long since graduated and were earning upwards of $200k a year. We ended that and guess what, mommy and daddy still paid their tax prep fees. I like the idea of charging full price and then showing a discount--will bring it up with the boss next week. It does get noticed when kids come off of their parents' return and get hit with a full bill. It will also help us notice that the child is no longer a child and stop automatically charging last year's fee. 4 Quote Link to comment Share on other sites More sharing options...
BLACK BART Posted January 18, 2016 Author Report Share Posted January 18, 2016 On 1/15/2016 at 1:54 PM, kcjenkins said: Just curious, BB, where in AR? I'm in CA now, but was in Jonesboro from 75 to 2012. Dear KC, Unlike the Powerball winners, I'm a bit gunshy and had druther stay unlocated (just hate big cities and that dang Google Earth thing). Not that I've got anything worth stealin', but I had to co-sign two notes at my last family reunion and prefer to keep movin' along. Since I dropped my E&O insurance and like to spin yarns about my crazy clients, I figure they might sue me for slights (real or perceived). Too, IRS might consider such drivel coming from a low-population hole-in-the-road as a violation of disclosure rules (or maybe even human rights). But anyway, to answer your question somewhat (without pinnin' myself down too fine ): I once lived at Mountain Home, then descended southeast through Calico Rock, up to Gum Stump, down toward Oil Trough, over to Possum Grape, back your way toward Bucksnort, then driftin' down between Turkey Scratch and the Mississippi River. And that's where I can sometimes (but not always) be found. Best regards, BB 2 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 19, 2016 Report Share Posted January 19, 2016 What, you never hung out in Goobertown? 1 Quote Link to comment Share on other sites More sharing options...
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