Time wasted on potential new clients

Time wasted on potential new clients

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Is it just me or do other accountants despair at the time and advice given away to potential clients with no result? Time was when new clients would politely ask if you could take them on, and often fees weren't even mentioned at the initial meeting. Now all they want is a quote, and after giving them an hour or so they scuttle off "to think about it". Invariably I never hear from them again. Some come along with a list of technical questions, apparently to take advantage of the free initial consultation. I get lots of phone enquiries where someone "just" wants advice - usually with no intention of paying for it. I am getting disheartened at it all. Does anyone have a strategy for using time more effectively?
Rachel

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By AnonymousUser
07th Mar 2008 09:19

Marketing Leads
Marketing Virgin, in answer to your query, and I aplogise for the delay, the company I used for my qualifying leads was:-

GRF Accountancy Marketing.
19-21 Ashton Square,
Dunstable,
Bedfordshire LU6 3SN.

Tel: 01582 - 476 444
Fax: 01582 - 476 761

I have no connection with this company in any way, apart from being a previous client, and being offered a very professional service, which has paid dividends ever since.

One thing I should mention, is that you would have put aside at least one day each week, sometimes two, (for the duration of your contract) so that you can attend the interviews they set up for you - all of which are either at the client's place of work, or at their home.

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By pauljohnston
05th Mar 2008 18:27

Some really great advice
Rachael whether we all would admit it or not most of us have been where you are. It is soul destroying to work for 1-1.5 hours and get no where time and time again.

I do have try and do a mini interview on the phone. Try and find out what they want and then do you want them. There was a post (last week I think ) from a lucky soul who had a two hour interview.

Although not on the same lines how do your fees compare with the competition. I went through the same as you but was advised to put up my fees by 10% and I did and lost no clients. The extra cash allowed me to stop and target my market.

We all know that referrals is great business so try and develop a strategy along this line as another poster did and we do by offering a discount off your fee. Mark Lee I am sure on his website will have some help for you

Finally if you dont get a client look at it as a positive thing - he was not right for your business.

Good Luck and I am sure you will make it

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By User deleted
03rd Mar 2008 04:37

Don't waste much time
Those that ask for a price straight away on the phone rarely come for a chat with me. So many now ring with a turnover figure and want a quote. I'm not taking a share in their business and depending on their records and the amount of work for me involved is the determining factor in agreeing the fee.
Beware those too concerned about costs. They are never worthwhile and if you get them, they will be looking for a cheaper quote next year and moaning to all and sundry that all their accountants don't provide them with a good enough service.
Also streamline your first meeting and do not give away any technical advice. Some are bloomin cheeky and expect you to do complex tax planning advice in a free interview, never to see them again. They are not concerned that you have living costs to meet and a lot of training to get that knowledge.

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Me!
By nigelburge
01st Mar 2008 14:01

Have a telephone chat first
before you meet them.

You will soon get to learn who are timewasters and who will be good clients.

Advice on the telephone is always much shorter than at a meeting anyway and you will "get a feel" for the potential client.

The ones to avoid are those who immediately ask how much you will charge. They are usually not interested in advice or a good job but just the cheapest they can get. They usually turn out to be trouble as well. Quote them a high fee and this will put off the timewasters straight away.

Never be afraid to turn away what you believe to be cr*p clients!! It may be hard when you are starting out but will save you so much time and an enormous amout of aggravation in the end.

Aim for quality not quantity and you will have a much more profitable and enjoyable practise.

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By User deleted
29th Feb 2008 23:03

Ken is right
I must say I wholehearedly agree with Ken. We are all so conditioned into the power of advertising, websites etc and it isnt all true in reality.

A few suggestions -

1. Try being a sales person not an accountant - not easy for some but try it.

2. Dont be afaid to be assertive and dont worry about discussing fees.

3. Offer free intial consultations but you are in charge - I would never dream of much more than 45 mins free intial consultation. More than this and your giving too much away.

4. Really think about where your new work is coming from - it sounds like your getting it from the wrong places. Go for quality leads.

5. Be selective - you dont have to, and shouldnt, take any client that comes your way.

6. If you want the client get them signed up at the end of the meeting. I do its easy with practice. If I want a client I have them signed up before they go. I honestly dont have a problem with wasted time on potential clients

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By User deleted
29th Feb 2008 17:14

marketing
What marketing company did you use David? That seems a very good return on what seems a modest investment. We have not advertised for years and now are in need of a boost of approximately 15-30K worth of fees, which ways would people recommend?

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By AnonymousUser
29th Feb 2008 14:54

Don't advertise - be brave and intuitive
Not to advertise is indeed a very brave step, but I like you Rachel have been through similar experiences.

However eighteen months ago, I did invest £3,000 with a Marketing Company to provide me with qualified leads, which produced an additional £43,000 of fee income on a 95% conversion rate. This additional fee income has blossomed into yet more fee income from personal recommendations, and it's still climbing.

However much of this success I believe, is in the preparation work at the initial interview, and I can spend anything up to 2 hours - I tend not to quote over the phone - I much prefer a face to face, just to see what "makes them tick" - and if I don't like the tick, I don't get involved.

Clients who pass on a successful recommendation, get a £75 referral discount off their own accountancy/taxation fees. Last year two clients who passed on a number of referals, got their annual accounts and tax returns prepared for free.

Hopefully in a couple of years, I'll be able to give up the phone books as well.

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By refs8
29th Feb 2008 13:15

Never Quote over the phone
Experience has taught me never quote over the telephone or if you do quote on the high side. Why because they tend to want everything for a cheap fee. Always say discuss fees at a free initial meeting. Conversion rate tends to be 95%.

I think just be confident in your ablity normally works and get rid of the poorer clients for quality ones hopes this helps

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By Ken Howard
29th Feb 2008 12:24

Don't advertise
We suffered the same a couple of years ago but took a deep breath and stopped advertising. We're not in Yellow Pages, we took down our professionally subscribed for website and replaced it with a 3 page home-made one instead, we don't even have a sign on the door anymore. We don't smooze the local bank managers, nor go to the local networking events anymore. Our aim is to be invisible to anyone other than those we want.

We get a constrant stream of new clients from existing client referrals and keep busy with existing clients who are growing. We've never looked back - we now have a quality client base, very little time-wasting. Also, we very seldom lose a client to other firms - none at all in 2007 and only one in 2006.

I really find it hard to understand why some firms are so keen on marketing themselves. A few of the larger ones in my area give the impression they are desperate for new clients. They must be losing a lot that need to be replaced as they don't seem to be increasing in size!

Looking back, it was the best thing we ever did. Yellow pages just produced loads of people shopping around for the best deal. The internet just produced loads of non-uk people wanting to set up in the UK, most of whom sounded dodgy. Having a big sign outside encouraged "walk ins" who seemed to think we were a free advice bureau. If you have a quality client base, they will refer likewise quality similar clients. Once you have been referred by another client, someone who is happy with you, you have won the battle - you don't have to convince them how good you are, they already know!

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By User deleted
29th Feb 2008 11:49

Fees
Rachel, the only thing that I've found effective to weed out timewasters prior to meetings is to give them indications of minimum fees. This gets rid of the ones who are just looking for the cheapest accountant.

Also, in the inital meeting ask them lots of questions too, showing your interest in their business, but also doesn't give them the opportunity to just continually ask their freebie advice questions. The ones that are passionate about their business (and more likely to be successful) will happily talk about it at length.

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By User deleted
29th Feb 2008 11:04

What on earth do you expect?
God forbid that a potential client should ask for a quote!!!! If you need a solicitor do you "politely ask if they will take you on and not mention their fees at the initial meeting"? You're in business for heaven's sake. If you don't like free initial consultations then don't offer them. If you do offer them then use that time to sell yourself and your practice. If the prospect signs up - great. If they walk away - tough. Learn from it. We've all been there.

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By Richardrussell
29th Feb 2008 10:08

Graeme,
I always thought that the free initial consultation was a widely used and effective ploy within the accountancy market to get in front of a client, which increased significantly the chances of conversion. Do you just do the consultancy fee for particular high risk clients?

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By User deleted
29th Feb 2008 10:06

Tom
Surely the ID stuff isn't a deal breaker? I can't believe that producing your passport and driving licence can make the difference between one accountant and another!

I'm just glad I don't ask for it (and thanks for the clients Tom!!!).

:)

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By AnonymousUser
29th Feb 2008 10:05

Consultation charge
We had a similar problem to this a few years ago and stopped it by taking the following stance.

If the business is a one man band type or more typically someone with one or two buy to lets who wants free tax advice then we make a one off consultation charge which we refund against their first years fee if they become a client. Tends to sort out the time wasters.

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By User deleted
29th Feb 2008 10:01

30 minutes? I wish!

I also have quite a good conversion rate, but it comes at a price. I'm finding the first meeting can last between 1 and 2.5 hours. I take the view that the more interest that you show in a potential clients business, the better the chance of conversion.

I don't think I could stop a meeting half way through and say "right, that's your free bit, I'm now charging you at a pound a minute".

Something I've noticed recently is the number of clients who have set up a limited company (without advice) and have no idea about salary, dividends, expenses, etc... I find this takes a lot of time up.

I also agree with Mark's comment about billing early. I've had clients who have signed a 64-8 then I've not heard from them for a while, then found out that they've gone with someone else! Of course, it tends to be the ones that you're not too fussed about having in the first place - but that's not really the point.

But I don't get many calls just asking for advice.


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By User deleted
29th Feb 2008 09:42

A possible solution
I try to whet their appetites, eg saying that I can see some ways of saving tax for them, without going into too much detail.
What really annoys me at present is the following: I explain to the client that I shall need their ID details under the money-laundering rules. A few weeks later, I ring them to ask if they want me to act, and they say 'No, I have gone to another (qualified) accountant who says he doesn't want all the ID stuff.' This has happened 3 times in the last 4 weeks!

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By User deleted
29th Feb 2008 08:59

Not a waste of time
I do give potential clients a lot of time. However, I find that this is a good investment, as I have a good conversion rate.

Try not to get too disheartened. Do you follow up with the potentials? Sometimes they may not actually formally engage with you for several months, but it is fantastic when someone you spoke to many months ago, makes that phone call or email to say, yes, I would like to appoint you as my accountant.

If you feel you are giving too much away and time, perhaps limit the initial consultation to a shorter time. Officially I say I give a 30 minute free initial consultation, and sometimes that is adequate, but if I have warmed to the client I do often spend longer.

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By User deleted
29th Feb 2008 08:56

Training the client
Typically new clients will not have a clue about proper bookkeping so a lot of investment is necessary in training them how to keep proper records.

Personally I consider this training to be essential and the cost needs to be recovered from the client at some stage.

At one time I considered it appropriate to not bill the costs at the time and hope to recover the costs from future fees, but now consider this to be a flawed strategy. Instead training costs and advice on bookkeeping, just like registering them for VAT, setting up a PAYE scheme etc. are one-off non-recurring costs to be billed at the time of incurring the costs.

The "hope value" of hoping to recover the initial costs in the future is flawed because the future ongoing fees will look "£high" compared to other future potential advisors who would benefit from the training investment done by the first advisor and it cannot be right for one advisor to financially benefit from the work of his/her predecessor.

Additionally, billing a client at an early stage establishes the client's attitude to paying fees for work done - best to discover bad clients in this respect at the earliest possible stage.

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