One off meeting new client

One off meeting new client

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I have had a call from a prospect for a possible meeting lasting around 3 hours to look at how to get better information from his accounts. So it's a management accountancy sort of project.

I will of course have to get a driving licence/passport photo when I arrive and put in writing exactly what I will do for the money beforehand. The whole scenario has some pitfalls in that I'm going into an unknown arena unless I spend quite some time upfront questioning him.

I have quoted him verbally and he has gone away to think about it. Don't they all!

I can see how this could go pear shaped quite easily with him telling me after the event that he didn't think he'd had value for money and therefore he isn't going to pay the bill. For that reason I would want to be paid in advance. He doesn't know that yet and that may put him off further. I would rather know I'm going to be paid.

Have you had any similar experiences? What would you do?

Replies (15)

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By andy.partridge
25th Jul 2014 11:16

Milestones

1. Identify and agree scope including list of agreed specifics

2. Issue proforma invoice stipulating clearance of funds at least 3 working days before appointment.

3. At the meeting (sounds like 1-1 training to me) get verbal agreement from client that they are satisfied with what you have discussed before moving on to next area.

4. At conclusion of meeting ask client to sign a pre-prepared approval note confirming the hours and scope covered.

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the sea otter
By memyself-eye
25th Jul 2014 11:23

Three hours?

Sounds like he wants your advice for free.

The first question is - Who prepares his account now ad why has he not gone to them?

I would not agree to a 3 hour first meeting.

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By Bob Harper
25th Jul 2014 12:38

Charge

You have a few options:

Option 1 - accept the cost of the time as an investment in marketing/selling.

Option 2 - create a packaged service with defined benefits e.g. Financial Systems Review for £250+ with a guarantee.

Option 3 - charge a small amount (maybe £75) to do some initial reviews to assess/scope the project.

He came to you so I would suggest option 2 or 3. And, because you don't have a packaged service I would have suggested option 3.

Keep in mind that often there can be a lot of value with the initial review. So, you need to have an agreement where you get paid more than £250. An example could be that if you find cost savings of more than £5,000 you get 10%.

This type of pricing protects the client and rewards/motivates you.

Bob Harper

Crunchers Network

 

 

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By Moonbeam
25th Jul 2014 13:27

Management accounts

Andy has understood the nature of things. Thank you Andy for your advice. I shall be taking all of it. 

Three hours should be adequate for an initial session. It will only be free if he doesn't pay.

Prospect is unlikely to want to move accountants. Many accountancy firms either don't have the time, software expertise or inclination to advise on management accounts. I have made a very good living on this basis over the last 30 years. If you think about it, bigger companies actually employ full time accountants in house. It is that role I will be asked to perform in micro format. There is no conflict of interest between me and his accountants. I shall not be involved in corp tax or statutory accounts.

Most prospects will ask me to get involved in management accounts on a regular basis from day one. This one tells me he thinks he has all this covered. By his remarks so far he clearly doesn't have it covered.

Prospect is wanting to see if I can come up with a new approach to management accounts and that frankly won't be too difficult. In this particular case, he may want me to visit quarterly after that, but I really need to cover myself initially as I won't be visiting prior to turning up for the session concerned so won't have an opportunity of "bonding" before starting work.

 

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By Vaughan Blake1
25th Jul 2014 15:35

Do you know the source of the lead?

Always check this, so you can thank the introducer, renew the advert etc etc.  If it is an introduction from a contact I ring them up to thank them for the intro and to get a bit of gen on the would be client. Then a bit of Google time to see what is out there (business names & director's names) maybe a company search for £1.

I have an iphone app for companies house that lets you check the officers for free.  This has revealed a number of 'inconsistencies' on new and potential clients!

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Replying to lionofludesch:
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By andy.partridge
25th Jul 2014 16:01

Please remind me

Vaughan Blake1 wrote:

Always check this, so you can thank the introducer, renew the advert etc etc.  If it is an introduction from a contact I ring them up to thank them for the intro and to get a bit of gen on the would be client. Then a bit of Google time to see what is out there (business names & director's names) maybe a company search for £1.

I have an iphone app for companies house that lets you check the officers for free.  This has revealed a number of 'inconsistencies' on new and potential clients!

Does this have anything to do with the question asked or are you just making polite conversation?
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Replying to mike_uk_1983:
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By Vaughan Blake1
29th Jul 2014 14:39

Since you ask....

'Does this have anything to do with the question asked or are you just making polite conversation'

OP obviously feels a little uneasy about the situation (hence posting the question!) and asked what others would do.  The answer from me is that in addition to your excellent suggestions, I would do a bit of research from the original contact, Google, iapp  etc etc to get a feel of who I am dealing with.

I do like to know how the would be client found me.  Are they a recommendation from a longstanding friend or my best client whom I know wouldn't put me in contact with numpties or freeloaders, or have they chosen me from the 'yellow pages' randomly?

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By Moonbeam
25th Jul 2014 15:42

Yes, I know the source of the lead

It is my letter to the prospect! I've already thanked myself profusely. And have checked out the company's website and will check Cos house if he takes me up on the offer.

These are rather basic things surely.

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By Vaughan Blake1
25th Jul 2014 16:00

Good place to start though!

Apologies if we have a grandma egg sucking scenario here.  The fact that you asked the question indicates that you have at least a hint of a feeling that this may go wrong.  I work on the basis of more information gives a better gut feeling!

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By David Gordon FCCA
29th Jul 2014 13:58

Play by the rules.

Just play by the rules.

 Usually the first half hour is free, and you go from there.- With letter of engagement ready to be signed.

 If this prospect is a real business person he will not expect three hours professional time for free.

 So, if after the half-hour introductory, you are inclined to continue, don't unless he agrees and pays a fair deposit up front.

 Too many persons think accountants are charity advice centres, and too many of us myself included regularly fall for this.

 

 

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By David Gordon FCCA
29th Jul 2014 15:41

Yes you are correct, but

 On balance, client A usually does not know if prospective client B is a "Freeloader". We are here talking of professional fees. There are still a significant percentage of persons out there who would never dream of making their grocer wait for payment, mostly because they may see what they are buying, but because they cannot "See" or "Touch" our services, they think we can wait.

It is bad practice to ask client A what he thinks of B. Unless it is a specific reference request.

If A & B are real friends, then A will not tell you his friend is X?x. If A & B are not real friends then A will not tell you B is a "good guy". So do not put A in a position where he has to make a value judgment. Most ordinary reasonable persons feel uncomfortable with such questions.

If you have survived for any period of time in public practice, you will know within the first half hour whether this is worth running with, providing you have previously, carefully, politely, supplied the prospect with a considered list of meaningful information you want him to bring to meeting.

I afford you the courtesy of assuming you would not go into such a meeting with just a pencil and a blank sheet of paper.

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Replying to dmmarler:
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By Vaughan Blake1
30th Jul 2014 17:13

I'm not suggesting the Spanish Inquisition!

David Gordon FCCA wrote:

It is bad practice to ask client A what he thinks of B. Unless it is a specific reference request.

If A & B are real friends, then A will not tell you his friend is X?x. If A & B are not real friends then A will not tell you B is a "good guy". So do not put A in a position where he has to make a value judgment. Most ordinary reasonable persons feel uncomfortable with such questions.

If Fred tells me that he has recommended me to Joe, in my experience the conversation never just ends there!  Fred will undoubtedly give me a brief picture of what caused Joe to need my services and a bit of unsolicited background I wager. If Fred is a good client or friend I know then that he wouldn't knowingly recommend a 'bad un'. If Fred is himself a 'D' client then I will be doubly careful.

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By Jack the Lad
29th Jul 2014 16:43

New client - one off meeting

I tend to give the first hour pro bono to enable the client to make a judgement call on my abilities, personality, etc, ( similarly for me !).    I always write before the meeting to state this, and to set out my fee basis, perhaps with a Letter of Engagement setting out the work to be done.

Sometimes this is a waste of time.  Sometimes, as recently, it leads to more work. Always, it shows one's professionalism.   At the meeting, I can hope to demonstrate my USP and value for money, even if at first view my fees may seem high or higher than other quotations.

I agree with others that:

1. Enquiry should be made of reason why client has not gone to existing accountant.

2. Letter should be sent to existing accountant out of courtesy and professional etiquette.

Andy.partridge and Fawltybasil have it right !

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By qad999
30th Jul 2014 17:20

freebie

he's  after a freebie , probably a timewaster, why give up what will easily turn into  half a day's time ,

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By J_G_W
30th Jul 2014 17:25

Just get him to sign a fee agreement

that way you have it signed that he'll pay the amount due to you on the basis agreed and you can invoice him after the work is done.

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