What would you do, question for the self employed

[Flex]

So I went to see a potential new client today, they're paying a lot in accounting fees, I can pretty much blow their current accountant out of the water. Question is obviously I want to be competitive but at the same time I want to still portray a level of professionalism and if I go too low then they might doubt by level of competence.

 

I could go in at just under half of what they are paying but should I go higher, to portray a more professional service?

 

Strange position to be in.

Edited November 12, 2014 by Flex

[Grundy]

Save them 30%/40% by choosing you seems like a respectable amount over 50%

[Flex]

That's what I'm thinking.

[skahigh]

Agree, going too low would make them question your ability but you want to make sure you offer a big enough incentive to guarantee the switch.

[mrt]

Maybe point out that your service will more than cover what they currently receive and that your costs are substantially lower.

My local accountant does my company returns, paye,personal tax and payroll all for less than 1200 p.a. AND he drives a new Callifornia ! Mind you he also does the councils payroll. Small team of 8 staff.

[Wendy]

I am presuming you are new to being Self Employed and Charging out your rates etc.

 

Therefore I would suggest you decided what rate you wish to charge for all your work irrelevant of who they are or what they are currently being charged.

 

Business People talk, so it is not a good idea to charge different rates unless you have a good reason for doing so.

 

Just my opinion..

[Flex]

I am presuming you are new to being Self Employed and Charging out your rates etc.

 

Therefore I would suggest you decided what rate you wish to charge for all your work irrelevant of who they are or what they are currently being charged.

 

Business People talk, so it is not a good idea to charge different rates unless you have a good reason for doing so.

 

Just my opinion..

 

Er, they can talk and if they ask me there will be a valid reason for the difference in charges i.e. more work done etc.

 

At the end of the day a business is supposed to make a profit to support it's staff and director's.

 

Why would someone in business not aim to make a healthy profit?

 

Sometimes I cant charge the same rate, due to client pressure, client income level etc. And sometimes I work for free if they're old and need a favour.

 

I think your comment is fairly niave if you're in business too??

[Wendy]

I only offered my view, based on the question being asked and my experience.

[Flex]

And I only respond given years of working in industry, helping companies improve profits and as an independent accountant for the last 9 years.

[hensh65]

Yes you need to find the balance with making a good return and not going too close to his accounts price. You find if you are close to his price he will just say he cba changing. Good position to be in mind you! Trade up to a GT-r if you get more of them!

[glrnet]

Fill your boots Craig, if the customer has told you what he's paying now, Then all you have to do is justify your quotation professionally

 

 

Sent from my Zed using Nangkang tyres front, RE040's rear

[ZEUS]

I'd go somewhere in the middle of what you can do it for and what they are currently paying, that way they get a good price and you get a good profit out of it.

[leet8845]

My business is different but it most professions, once the job starts, other things can easily pop up. Just be sure you covered everything. I'm assuming the last account is making a living so he may not be over charging as much as you realise. I suppose this would depend on whether you're negotiating an hourly rate or a fixed price though.

[Crb]

I tend to look at how much my accountant saves me rather than costs me

[Bockaaarck]

If you can prove that you'll save them 30% and be professional, efficient and reliable / trustworthy. Then I think most organisations would seriously appreciate the saving and you'll potentially have begun a very solid long term working relationship with your client.

[Bockaaarck]

I tend to look at how much my accountant saves me rather than costs me

 

Agreed, this, plus reliability and efficiency are key for me.

[techinstaller]

I also agree ,im looking at the service level provided and the legitimate savings tax wise that my accountant can advise me on ,often a good accountant has pointed out claimable expenses i have not seen or advised of timely asset purchase or disposal etc.

The accountants fees are within reason not the main attraction to use them over others

[ATTAK Z]

I'd always look for an accountant that has a good relationship with the tax authorities.

[Flex]

I tend to look at how much my accountant saves me rather than costs me

 

There is a limit as to how much any legit accountant can save you and most accountants will be fairly consistent so to be frank it normally comes down to price and relationship. Trust me, that's the way it is.

[Flex]

Fill your boots Craig, if the customer has told you what he's paying now, Then all you have to do is justify your quotation professionally

 

 

Sent from my Zed using Nangkang tyres front, RE040's rear

 

I might struggle with the latter Just kidding obviously, Graham.

[Crb]

Put it this way..... Id prefer to spend £2k a year with my current well established accountants than spend £500 with some guy over the road..... Sometimes it doesn't pay to go cheap especially when it involves my own business.

[Flex]

Put it this way..... Id prefer to spend £2k a year with my current well established accountants than spend £500 with some guy over the road..... Sometimes it doesn't pay to go cheap especially when it involves my own business.

 

I'm not sure what that means exactly but my service will be far more hands on than the bigger firm as clients are more important to me.

[Jetpilot]

I am in a completely different industry but self employed, my rates vary for different works, chippie, painting, fencing etc Obviously all these require different rates to fit in line what others charge as i have to be competitive.

 

Without sounding naive, do you offer a different service than other accountants? I.e Would accountants not charge an hourly rate, rather than a flat fee?

 

In my line of work i charge the same rates (for whichever trade) regardless of who, whether they live in a 3 million pound house or a 1 bed flat, if the customers in the big places thought i was charging or found out i charged them more, i wouldnt get to go back.

[Flex]

I am in a completely different industry but self employed, my rates vary for different works, chippie, painting, fencing etc Obviously all these require different rates to fit in line what others charge as i have to be competitive.

 

Without sounding naive, do you offer a different service than other accountants? I.e Would accountants not charge an hourly rate, rather than a flat fee?

 

In my line of work i charge the same rates (for whichever trade) regardless of who, whether they live in a 3 million pound house or a 1 bed flat, if the customers in the big places thought i was charging or found out i charged them more, i wouldnt get to go back.

 

Most people want a fixed fee but I do offer flexible fees but 95% tend to be fixed, it's pretty much industry standard to go fixed with any additional work e.g tax investigation billed separately.