Fee for Trade Reference

Fee for Trade Reference

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Should I be charging a client a fee for supplying a Trade Reference? And if so, how much?
I recently upset a client by charging him and had to give him a credit note to keep him happy.
Any ideas?
Jenny Kent

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By deanshepherd
26th Jan 2007 22:29

Yes..
..provided it is clear to the client that they will be charged for the service.

Maybe you should include words to that effect in the letter of engagement.

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By martinfoley07
26th Jan 2007 23:25

Jenny, the answer lies entirely in..........
............how you run your practice, and your charging arrangements with your clients. So short answer is it depends. Long answer is:

I don't mean how you run your practice purely in the legal sense of contractual arrangements (which should be clear enough anyway) but in the wider sense of in your commercial arrangements.

If you are charging by hourly rates, is it clear that he would then be charged for each half hour or hour or whatever it takes for any small tasks? Then bill. Is it clear from arrangements that he is not charged for such bits and pieces, or that you add up such bits and pieces annually, then do that.

If your pricing is based on "fixed" prices, then it's a pretty similar question. Do you allow for a few extra bits and pieces in the quote, so there are swings and rounabouts, or are you absolutely strict with any extras?

Any of these approaches can work if they are clear enough up front and you and client are on same wavelenght on the point.

However most small businesses hate being charged for such odds and sods, bit by bit - and it can really turn them off seeking advice at crucial times, costing them and you a lot of money. So I build leeway into the fee rather than go for such small extras.
If the fee is too tight to do this, and the client does not want to pay for the extras either, you have to review the client's commercial worth to ypur practice.

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By User deleted
27th Jan 2007 09:41

Wouldn't
specifically charge for a reference - how tight is that? Akin to giving a bill that itemises every letter and phone call (does anyone do that anymore?). However, agree with Martin's last paragraph and particularly building a little padding in to cover these kind of requests.

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By amberlight
27th Jan 2007 13:44

Thanks for your comments
Thanks Guys,
This particular client is charged an hourly rate, so I didn't think it unreasonable.
However, after reading your comments I think I agree that in general I shouldn't charge for it and have changed the Terms of Engagement letter to new clients making it clear that I still have the option.

Jenny

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