Need help (turning away a client)

[ILLMAS]

How can I tell a client nicely/professional manner I would not be interested in working on his returns this year, what would you say?

MAS

[Lion EA]

His needs do not fit your business model.

You do not specialize in his type of return.

He would be better served by someone with more time/different expertise/larger staff/pick what fits.

You are not taking new clients.

You do not accept new clients after January of each tax season.

Keep it short and sweet with no detail he can argue with.  Smile, and look a bit sorry!

[rfassett]

I do not want to work on your return this year!

[JohnH]

Identify something unique about his return or his filing situation.  Then just tell him you think he needs someone who has a focus in that area and it isn't something you are interested in pursuing.  That's what I tell people with EIC. 

Or else you could just tell him you're fed up with his nonsense and you know he won't want to pay 4 times last year's fee for the same work.

Either of the above is effective.  Just be sure to slam the door shut on any possibility that you'll change your mind.  He has 10 weeks to find someone, so he'd better get busy.

[Catherine]

I have used several of the methods above.  Additionally, I have told people that due to changes in my practice, they should expect to see their fee increase X% to about $Y (big numbers in both of those spots!), or that I will no longer be doing returns of type Z (whatever theirs is), or returns where we (we = me = my tiny company) do not also do the bookkeeping, or any number of other conditions.  

The key part is to pick a condition that you are absolutely *certain* they will walk away from in a huff.  If their bugaboo every year is price, quintuple it!  But usually some version of "I don't do this type of return any more" will do it.  There is no wiggle room there.

Also depends on how certain you are about ditching the bum (um, problem client).  You can't trust their figures - ditch 'em fast!  If it's just money - well, someone on another forum had a tale a few years back.  Client drove him nuts; called constantly.  Took the advice of "double his fee" and the first year still drove him nuts.  Doubled again - not quite as nuts but not worth it.  Doubled again (!) and became the guy's favorite client.  The calls that were a royal PITA at $1,250/year were a pleasure for $10K a year.  Client always paid quickly; they just wanted way more hand-holding than $1,250 bought.

[Elrod]

Saying no to a  client is not the Kiss of Death. Rather, what will certainly lead to some issues in business is saying yes when you can’t deliver — or your gut has told you that the prospective client and/or their project is not the right fit.

Although as a business owner, you don’t want to turn anyone away, sometimes it makes more sense when it comes to the welfare of your business to decline a business relationship at an early stage with a prospect if the relationship between the two of  you is not mutually beneficial.

[mcb39]

I had to do just that today.  This was a client for several years.  Last year they made an appointment and never showed up or called to cancel.  This year he calls begging me to take him back.  Last year they went to Liberty and he said it was like dealing with the Mafia.  He weakened my resolve on SUNDAY, of all days and even at 4 times the prior prep charge, he wanted to come back. 

Today, I sent him a polite email stating that now that I had time to think it over, we would both be better served if he were to find someone else.  I simply could not fit him into my busy schedule.  He had forfeited that privilege last year.  He returned a kind email thanking me for my time and wishing me well.  You have no idea how much better I feel.  I had a bad feeling about this apple and suggested he might want to take it to a VITA preparer since he has so many issues.  Even my husband is glad that I got rid of him.; because he called four times on Sunday; left a long message as well as a long email.  He was a little upset that I hadn't responded. 

All of the above suggestions are good and correct.  Even Doctors have to refer out patients that they have issues with.

[SaraEA]

We have a template "fire client" letter that has options like "the direction our practice is taking" or "staffing changes" or "staff expertise" means we can no longer provide the service/attention your tax situation deserves and that you will be better served elsewhere.  Be nice to the client, like it's not their fault.  Like Catherine, we have a PIA client we couldn't outright fire because he'd been with us for so long so we kept raising his fees hoping he'd go away.  He's still with us, paying us a fortune, so the pain is greatly lessened.

[BLACK BART]

 

4 hours ago, SaraEA said:

...PIA client...kept raising his fees hoping he'd go away.  He's still with us, paying us a fortune, so the pain is greatly lessened.

I agree with this - getting an extra high fee makes you feel much better about putting up with guff and grumps.  While I haven't found any one solution that works for all, pricing them out of the office seems most effective.  One particular pest told me he'd leave if I went up again, so I promptly added $100 to his fee and he's now torturing some poor soul at Jackson-Hewitt. 

5 hours ago, mcb39 said:

...All of the above suggestions are good and correct.  Even Doctors have to refer out patients that they have issues with.

This post reminded me of something I still chuckle about.  Years ago I had a doctor for a client.  We were in my office going over his stuff and I was complaining  bitterly about a PIA customer who'd just left.  He grinned knowingly and said "Yeah, he's also my patient.  I'd like to refer him and a few others to Dr. Kevorkian."  

[Catherine]

@mcb39 -- calling my HOME office on a Sunday is, prima facie, grounds for being fired.  Multiple times?  Grounds for egging his house...  or at least thinking about how much fun *that* would be!

[Pacun]

Make it short and simple. With one hand give him his paper and with the other open the door. With your head and neck show him the open door and politely but firmly say "Adios Amigo". (Make sure you pronounce Adios as Arios).

If that doesn't work, just tell them the truth such as: You are not organized, you are using business money for personal expenses and you expect me to take deductions, you are always late with the information when I ask you, I don't feel comfortable with these expenses, etc.

Careful with saying "You need someone more experienced", this person will go and tell everybody that you don't know anything and bla bla. Remember the rules of marketing.

[RitaB]

If it's somebody who's a top 98th percentile PITA, and they ask me who I'd recommend they go to, I tell them the hateful preparer who messes up returns and charges an arm and a leg to do it.  That way, I get rid of the client, and I inflict pain on both him and the mean preparer.  Win-win-win! 

Just kidding.

Ok, not really.

[Gail in Virginia]

4 minutes ago, RitaB said:

If it's somebody who's a top 98th percentile PITA, and they ask me who I'd recommend they go to, I tell them the hateful preparer who messes up returns and charges an arm and a leg to do it.  That way, I get rid of the client, and I inflict pain on both him and the mean preparer.  Win-win-win! 

Just kidding.

Ok, not really.

I tend to match my referrals out to the reason i am referring.  If it is someone that I wouldn't mind doing the return, but they want a RAL and I don't do those, I send them to a competent, professional office that sends me referrals for more complex issues they don't have time for.  If it is someone who wants to push the ethical envelope, I know the local preparers that will help them push, and send them that way.  They might as well go to jail together - I just don't want to be part of it. 

[Richcpaman]

If I am firing a client, but it is because I am moving in a different direction, then I will give a referral. 

If they are a PITA, its not my job to give a referral. When the client states: "What am I going to do?"  Not my problem.

I am upfront when the client comes in for the FIRST time.  The first 30 minutes, *I* make the decision if I want this person as a client.  It is *NOT* their decision.

That helps a lot.....

Rich

 

 

 

 

[rfassett]

I never have referred out a client.  It is not my job to find them a new preparer.  When I fired the bottom third of my client base several years back, I did it before the season started so they had plenty of time to do their own research.  And there is only one other that I ever invited to leave.  She was a real PITA and seemed to keep the whole office in a heightened level of anxiety whenever even her name was mentioned.  She threw a fit when I said I was not interested in dealing with it anymore.

Now I have a client base "to die for".  I cannot think of one client that I would kick out right now.  And like Rich, now it is completely MY decision as to who becomes a client.  I have had three meetings with new prospects this year so far.  Two will be clients, the other will not.

I am grateful that I have arrived at that place with my practice.  There was a time when I had to take anything that walked through the door.  No more!

But for the original post - I stand by my previous comment.  Short, sweet and to the point.  No explanation is necessary.  If you do not want to deal with the client, just say that.