Sticker Shock Clients

I'm very honest with potential clients who call that appear to be looking for the best price when I tell them I'm not going to be the cheapest around. I feel that I would be discrediting the profession if I charged the same price as HR&R Block down the street. Obviously price shoppers are not my ideal client anyways, but how do you guys handle the call with someone who thinks paying $250 for a return with a rental property is a good deal? I get people who call me and tell me they've been with Joe CPA or Sally tax preparer for 20 years and they're retiring and looking for someone new to prepare their returns but have been paying next to nothing for 20 years.

Thanks!

My line of questioning is usually who did yours tax returns the last couple years, why are you changing, and how much did they charge you.
If it's a referral from a current client, as soon as I start to explain my rates they tell me they already know and they know they were getting a deal or similar.

I had a call a couple weeks ago and they said they paid too much ($350) for a MFJ tax return with a Schedule C. I told them I was likely not a good fit for them.

It's best to just let them go somewhere else. They are comparing a product, when they should be comparing a service.

"If cost is the sole motivating factor, or primary motivating factor, we're unlikely to be a good fit."

Happens all the time with older pros who haven't adjusted prices. I often laugh and tell them that's what I was charging 15 years ago. For me, basic homeowner with kids is 450 or so...and we add on from there. If they're willing, we keep talking. If not, bye.

I am one of those older pros, way older, that tries to keep prices in line with the current market. If someone calls, and the first thing they do is ask about prices, we automatically tell them we are not accepting new clients. Got enough to do without having someone that is going to complain to me about prices.

That's a good reply, Carolina!

Happens all the time with older pros who haven't adjusted prices. I often laugh and tell them that's what I was charging 15 years ago. For me, basic homeowner with kids is 450 or so...and we add on from there. If they're willing, we keep talking. If not, bye.

I am not accepting new clients unless they are asset managed clients so when I see a return from Block, they are usually around $375 to $500. The taxpayer normally has a slightly above average difficulty type return.

My point is Block doesn't get emotional. They are agnostic to client feelings. As should we.

Im in Charlotte. My minimum has been $500 since 2001, went to $600 in 2016.

Around here, H.R. Block is not cheap! I am often surprised at how high they charge.

Has anyone seen a price chart of HR block they are willing to share? Or a rough idea of their prices?

My minimum fee for a family 1040 (or any 1040) is $550. Anything with a C is $900 minimum.

If a client is shocked, I realize:

"even though I could have had them for $350, which is still worth it, by not having them I make room for the one's that will happily pay $550"

I think I got this from Man Vs Tax (or Capt Cook?), but when a client mentions something that is not even close to my prices, I really like to say, "it doesn't sound like we'll be a good fit, but I'm willing to talk about it".

If they want to talk about it, I tell them that with me they are getting something that they cant get from cheap preparers. Someone who has already made mistakes over the years. Someone who has seen where not to let a client get themselves into trouble. Someone held accountable for continuing education and professional-level ethics and data management.

I tell them that if they want to find a non-rated preparer that works out of their car, for 250 bucks, I understand and wish them the best in their searches. And "If that's what you are looking for, I'm sorry that I'm not a good match for you.

Then I'm done. I don't put much time into it. A few sentences.

I guess it's "sales", but it's really just conveying the value so they understand.

If they don't like it, good, keeps availability for the one's that do.

I'm grateful beyond words that I am in such a lucky position that I can afford to be so arrogant, and I remind myself of this when I talk to people so I don't come off like a jerk.

Has anyone seen a price chart of HR block they are willing to share? Or a rough idea of their prices?

Google "HR Block prices reddit" and select "more results from reddit" and go through the threads.

Fun to read the comments.

We have a form that new prospects complete and the following is my boilerplate response I send to almost everyone. Surprisingly (to me) I still have a high appointment rate.

Thanks for your interest in our tax planning and preparation services.

Our typical client is a business owner or an individual with more complicated tax planning and preparation needs. Our annual service plans start at $1,500/year where we offer an initial tax projection and planning ideas, regular consultations when issues arise and, of course, annual tax preparation. If you are a business owner, this may include business coaching. And starting in 2022, I will be licensed to offer full personal financial planning and investment management services in conjunction with tax planning and compliance.

Please be aware that I do not have any time slots available for tax preparation between 1/1 and 5/15 at this time. For clients that we know will be filing for an extension, we will automatically file extensions on their behalf.

The first step in our process is to schedule an exploratory meeting via phone or video. This meeting is complimentary and will be a chance to learn about each other, the issues you would like addressed, and how we can help. We won’t get into problem-solving at this point, but I will be able to develop a sense of the complexity and whether we are a good fit for you.

If you would like to proceed, please book an appointment at flatironadvisors.com/schedule-an-appointment. The link is also beneath my signature below. Let me know if you have any questions and I look forward to hearing back from you!