Value pricing

Posted by Kent accountant PM | on Thu, 12/07/2012 - 09:27 1357 40 comments | report

Rather than start another debate on value pricing I was hoping some members could offer advice on how they would approach the following scenario.

I have recently taken on a new client, company has three directors, one of whom has another company (which he is a director of with his wife). He earns in excess of £150,000.

I do not act for this director's other company and through a general discussion found out that in previous years he has not had any tax planning advice about how he can reduce his personal tax burden.

I outlined an approach whereby he could reduce the amount of tax he pays and he has asked me to quote for doing this work (outside the scope of my current engagement), normally I would offer a fixed price, but I'm thinking of offering to do the work for a percentage of the tax saved.

What do others think is reasonable to quote using value pricing?

Comments

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25-30%

BigBadWolf | Thu, 12/07/2012 - 09:39

Are you governed by a regulatory body?

Paul Scholes | Thu, 12/07/2012 - 10:12

would agree with Paul...

justsotax | Thu, 12/07/2012 - 10:42

.

ireallyshouldknowthisbut | Thu, 12/07/2012 - 11:18

Thanks for the responses

Kent accountant | Thu, 12/07/2012 - 11:27

More bands

petersaxton | Thu, 12/07/2012 - 15:07

I agree with all of that

ireallyshouldknowthisbut | Thu, 12/07/2012 - 15:40

Peter you couldn't resist it

Paul Scholes | Thu, 12/07/2012 - 16:03

Knowledge

petersaxton | Thu, 12/07/2012 - 16:21

Options

Bob Harper | Thu, 12/07/2012 - 16:32

Hmmmm

Kent accountant | Thu, 12/07/2012 - 17:23

Value

Bob Harper | Thu, 12/07/2012 - 17:45

@Bob

ShirleyM | Thu, 12/07/2012 - 18:49

Ideas into action

Bob Harper | Thu, 12/07/2012 - 18:53

@Bob Harper

jaybee661 | Thu, 12/07/2012 - 19:03

I wasn't referring to value pricing

ShirleyM | Thu, 12/07/2012 - 19:05

@ShirleyM

jaybee661 | Thu, 12/07/2012 - 19:07

Compliance

Bob Harper | Thu, 12/07/2012 - 19:26

Bob

ShirleyM | Thu, 12/07/2012 - 19:47

Percentage of tax saved is okay in my eyes.

dbowleracca | Thu, 12/07/2012 - 19:58

Charging for compliance

Bob Harper | Thu, 12/07/2012 - 21:29

So Bob

ShirleyM | Thu, 12/07/2012 - 21:56

Good points and points I struggle with

Kent accountant | Thu, 12/07/2012 - 22:40

@Bob Harper

jaybee661 | Thu, 12/07/2012 - 23:16

Do more

Bob Harper | Fri, 13/07/2012 - 07:34

@Bob

ShirleyM | Fri, 13/07/2012 - 07:59

Value

Bob Harper | Fri, 13/07/2012 - 11:03

Bob....perhaps i can become a client of

justsotax | Fri, 13/07/2012 - 11:19

Minimum fees

Bob Harper | Fri, 13/07/2012 - 11:32

Mix & match

Paul Scholes | Fri, 13/07/2012 - 11:42

communist state....no merely

justsotax | Fri, 13/07/2012 - 11:42

Dreaming

petersaxton | Fri, 13/07/2012 - 11:51

Who wants it?

petersaxton | Fri, 13/07/2012 - 12:03

Compliance and not much more

Flash Gordon | Fri, 13/07/2012 - 12:03

@Flash Gordon

jaybee661 | Fri, 13/07/2012 - 12:25

Wake up

Bob Harper | Fri, 13/07/2012 - 14:22

@Bob Harper

jaybee661 | Fri, 13/07/2012 - 14:39

@Bob ...

justsotax | Fri, 13/07/2012 - 15:41

As justsotax said

petersaxton | Fri, 13/07/2012 - 15:55

Comments Reopened

Henry Osadzinski | Fri, 13/07/2012 - 16:46