What do you do differently or better that makes clients happy to pay higher fees?

What do you do differently or better that makes...

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In my article https://www.accountingweb.co.uk/topic/practice/how-some-accountants-charge-100-more-others/481684 I explain that many accountants have worked out how to charge at least twice as much as other accountants even for standard services such as tax returns by answering the question “What do we need to do differently or better so that clients are happy to pay us higher fees?”

My question for this forum is this… what do you do differently or better, or what have you seen other firms do, that makes clients happy to pay higher fees?

I am hoping that we won’t get a lot of “why we can’t/won’t increase our prices” comments, but instead get some useful insights that we can all use to earn more by serving our clients better

Replies (23)

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By Steve Holloway
22nd Feb 2011 08:31

No chance Steve!

May I be the first to say that justifying a 100% mark-up for the same work by slapping on a bit of gloss is just not the place we should be in the middle of a recession. People are suffering and we might start helping them by charging a fair price for our work.

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Steve pipe
By Steve Pipe
22nd Feb 2011 09:08

Clients deserve more - and so do accountants

 

This isn’t about “slapping on some gloss” or ripping clients off.

Its about serving them better and, as a consequence, earning more

BMW aren’t ripping your client off when they choose to buy one of their cars for two times the price of a broadly similar Ford. Starbucks aren’t ripping your clients off when they choose to buy a cup of coffee at twice what they could pay elsewhere, and 10 times the cost of making it at home. And the local private school aren’t ripping your clients off when they choose to send their children there rather than to the local comprehensive.

The point is this: your clients are always choosing to pay more than the bare minimum for things – provided that they (and YOU) believe they are worth paying more for.

If they choose to accept your higher prices that is because they feel your services are worth paying more for.

On the other hand, if they choose not to accept your higher prices that is giving you hugely useful feedback – ie that your clients do not believe you are worth the extra money. And once you know that you can, of course, start working out what you are going to do about it.

But, either way, how can you possibly be “ripping them off”? In fact, to suggest that it is ripping clients off is tantamount to treating them as morons.

Clients aren’t stupid. They know what’s what. They know what they want. And they know they are in the driving seat.

You can’t hoodwink them. And they don’t suffer fools gladly.

So, if we believe that when they agree to pay a bigger fee to firm X than they could have paid to firm Y, firm X is ripping them off, we are insulting them. We are, in effect, calling them stupid for paying more, and saying that they don’t make good business decisions.

We would never dream of criticising them in this way for choosing to buy a more expensive car, house or education for their children. So how dare we criticise them when they choose to pay more for accountancy services that they really value?

Bottom line = When you charge them more, you can help them more. And more help (rather than a bargain basement service) is exactly what they really need to get through these really difficult times.

 

 

 

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By cymraeg_draig
22nd Feb 2011 09:47

.

"We would never dream of criticising them in this way for choosing to buy a more expensive car,"

I would if they were daft enough to buy a BMW, which is the example you used.  Do your clients a favour and don't advise them on what car to buy - there are faster, better handling, better built, and more desirable cars for far less than a BMW.

 

As for charging client's more. Why ?

Before pushing up fees ask yourself a simple question.  Why am I in business?  Or more accurately, why am I in this business?

If the answer is "to get rich" then I suggest you start selling double glazing or whatever and join the rest of the con artists who laughingly refer to themselves as "salesmen". Better still, become a banker and really rip people off.

There are two things we can do.

Supply clients with the services they have to have - basic compliance work.Supply clients with additional services IF they choose to pay for them. -  assuming we are ethical enough not to sell services the clients dont need and wont benefit from.

 

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By Steve Holloway
22nd Feb 2011 09:50

Open all hours ....

you remind me of Arkwright lecturing Granville on the art of retail! 'Listen lad, do you want your loyal customers to be weighed down by all that change .. do you ... do you? No, right sell them something else'.

Your assumption that a lower price equates to an inferior product is simply nonsense Steve. Every Friday I buy my food for the week at a farmers market. All organic, local, low food miles etc etc ... does it cost more than a supermarket ?...no of course not as the supermarket has huge overheads to absorb which the farmer selling direct does not. I, as a sole practitioner can give a level of service that a large firm can only dream of. Single point of contact, qualified person does all the work, meetings at your convenience, email and telephone support, remember your kids names, talk about footie as much as you like. BUT, like the farmers I see on Friday, I have only small overheads to absorb, so I can charge fees that provide me with an income and the client a fair price. Both of us are happy neither are stupid.

PS - Starbucks -- really?! Not exactly a great example of a environmentally sustainable and ethical business model! 

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By mm01
22nd Feb 2011 10:27

I suspect...

That if anyone has found the magical formula to charging 100 points over your competitors fees and still have plenty clients that they wont be sharing it on here.....

C_D to digress, what are you thoughts on the BMW M3?  I was watching Top Gear at the weekend and Clarkson was still raving about it.  Personally I prefer the looks of the Audi RS4.

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By Steve Holloway
22nd Feb 2011 10:40

Audi RS4?

Have you noticed that the car flashing their headlights while doing a ton on the motorway is now always the RS4 wheras it used to be the M3?! If that is you  ... then good choice ... otherwise choose again. Alfa is the only manufacturer that is making cars I would aspire to buy nowadays.

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By clegganator
22nd Feb 2011 11:22

Finally!

A topic on accounting web where I feel like I can make a worthwhile contribution!

Anyone who buys a BMW has no imagination. There are so many manufacturers making just as high quality cars such as Audi, Alfa, Jags, VW, etc, but because the BMW has a status of a rich persons car every up and coming peasant goes and buys one making them common as muck.

Give me Steve's 205 GTi (I'm assuming GTi as your not going to post something like the 1.1 I had as your profile photo) over a 1 Series anyday...

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By cymraeg_draig
22nd Feb 2011 11:30

Be careful what your car says about you

C_D to digress, what are you thoughts on the BMW M3? I was watching Top Gear at the weekend and Clarkson was still raving about it. Personally I prefer the looks of the Audi RS4.

Posted by mm01 on Tue, 22/02/2011 - 10:27

 

Like all BMW's the M3 is overrated - and over priced.

Also, always remember that your car says a lot about you to clients.  Turn up in a clapped out Ford Sierra and they will figure you cant be any good. Turn up in a £50k Audi and they will figure you're going to rip them off to pay for a flash car.

Personally, for the most fun per £ to be had from a car, and for only about £20k new, I'd recommend my everyday transport of choice - a Golf Gti MkV.

As for the ultimate drive - try an AC Cobra 427S/C - 7 litres of power in a body weighing little more than a mini. Of course a mint 1965 one will set you back around £1 1/2 million, and you will probably keep it on the road about as far as the nearest tree trunk or lamp post, at which point it will decide to hurtle off the road - and kill you.

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By Steve Holloway
22nd Feb 2011 11:31

Not that one anymore ...

but my daily runaround is indeed a 20 year old mint condition 205 1.9GTI!  I agree with your sentiments on the BMW except the 2002 and 3.0csl which are both classics.

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Steve pipe
By Steve Pipe
22nd Feb 2011 11:46

You are putting your fees up aren't you Steve?

 

Steve Holloway, are you the same person who said on their 19 Feb 2011 post...

"Yes fees are due to change quite significantly (very) shortly following the recent survey results! I am adrift on the lower end of both SE & Ltd Co. clients." ?!

https://www.accountingweb.co.uk/anyanswers/looked-more-accountancy-services-websites/481296

And if you are, I go back to my original question, what are you going to be doing differenty/better to earn those higher fees?

 

 

 

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By Guest1
22nd Feb 2011 11:53

I preferred it

when the topic changed to cars.

Now, if you really want to "turn me on" (so to speak) move the topic to Labradors, Raptors and Pheasant's!

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David Winch
By David Winch
22nd Feb 2011 12:01

BMWs

I find that very many of my clients have BMWs - usually an X5 with darkened glass and a personalised numberplate.  It seems to be the drugdealers' motor of choice!

David

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By clegganator
22nd Feb 2011 12:15

.

Not a fan of MkV Golf, however when mine is a little something like this but with a bit more rust I suppose I shouldn't say anything!

http://cache.gawker.com/assets/images/jalopnik/2009/03/MK2_VW_Polo.jpg

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By petersaxton
22nd Feb 2011 12:47

Wrong comparison

"And if you are, I go back to my original question, what are you going to be doing differenty/better to earn those higher fees?"

Why does he have to do anything different or better? He was charging too little before.

If I decide that by charging £250 I am not charging enough then I can put them up to £500 and think it's about right. I would think this fee should be compared to what similar local accountants are charging not what Steve was charging before.

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By Steve Holloway
22nd Feb 2011 12:57

@ Steve P

... yes it was me and your point is? I need to move my fees up in line with the median reported in my survey of other similar sole practitioners. That's what my price promise to my customer has always been but being a sole practitioner is difficult as we do not suffer client churn and can therefore become remote from the general market. The survey was undertaken in recognition of this. It doesn't change my original post ... we should charge a price that is fair to us and our clients.

 

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Steve pipe
By Steve Pipe
22nd Feb 2011 15:58

My point was this Steve...

... you are a successful practitioner who, once you have looked at the EVIDENCE of what other firms are charging, has decided to increase prices.

Good on you, and I couldn't agree more... since that is exactly what my full article on accweb is suggesting...

 https://www.accountingweb.co.uk/topic/practice/how-some-accountants-charge-100-more-others/481684

ie that accountants look at the evidence, and if that evidence suggests others have found a way to charge more, then if they are not happy with their profits, then they should charge more too (just as you are about to).

If a firm finds it can charge more without doing things better or differently, that is brilliant. Such an easy way to improve things.

But where firms find it harder to charge more, the key is to answer the question:

“What do we need to do differently or better so that clients are happy to pay you higher fees?”

PS  Hopefully this answers your question too Peter Saxton

 

 

 

 

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By cheeeetah
22nd Feb 2011 18:45

What to do differently

I think you have to ask the customers.  They are the ones that might pay more for a better service, or not.  It has to be down to service and good relationships at the end of the day, excepting the quick-buck sales. 

What do your customers like/prefer about you to another accountant?  What would they pay more for?  Would they take an accountant just on price or what other factors?

If you survey your lost customers as to why they moved away from you, you will have an inverted list.

Why do customers change at all.  Like a bank, they would prefer not to change so there must be good reasons to make a change. 

Friend of mine has an accountant who does not help and guide.  He let him loose about £1500/year for 4-5 years and the friend was quite happy with him, believing he was doing a great job.  Soon as he discovered this rather basic action he should have been doing...should have been guided to do...he started looking for a new accountant.

But it is not the PR or lack of it in the accountant, or what car he drives, even.  That is just Blair-type spin.  It has to be the Service/Help given to the customer that makes the difference, I feel. Does he help you save tax?  Does he help you to expand the business from his position as an accountant?  Or does he just take you cash and fill out the forms?

 

 

 

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By petersaxton
22nd Feb 2011 18:59

Ask and you will be told .... something

The problem with asking customers is that they don't usually give a straight answer. They wonder how they can give the answer that suites them. If you ask what they would pay more for they wouldn't suggest anything because they wouldn't want to pay more. They would rather intimate that they want an accountant who concentrates on A but at the same price - knowing that you would still give them B & C.

Try it and see how far you get.

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By jaybee661
24th Feb 2011 14:16

... interesting points...

I have to say I'm glad I'm not a client of c_d - I feel quite sorry for them if his attitude towards them is the same as it is on this forum - not sure I'd have many clients left if I started slagging them off when they bought a new car...

I am a (very happy) member of AVN and, since joining, have vastly increased what I charge to clients... yes, in some cases I have now quoted 100% more than I would have done... client has agreed and I have earnt more money... is this a bad thing then?

I like to think I give my clients a good service and, if they are happy to pay "premium" prices then surely that's a good thing.

I also have to stand up for Steve yet again - I do not have any shares in AVN, nor am I in any way connected with them, I am just a very satisfied and happy member.

It's his take and his attitude towards accountancy that has helped transform my business - yes, I pay for my subscription but all Steve's initial help was free - whether it be from his free seminar in London (the most motivational thing I have ever been on) or just speaking to him via e-mail.

I think everyone wants to earn decent money so that they can do all the things that they want to do - and, as long as your clients are happy with your work, everybody wins.

 

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By cymraeg_draig
24th Feb 2011 14:27

jaybee661

 have to say I'm glad I'm not a client of c_d - I feel quite sorry for them if his attitude towards them is the same as it is on this forum - not sure I'd have many clients left if I started slagging them off when they bought a new car...

Posted by jaybee661 on Thu, 24/02/2011 - 14:16

 

In another thread (smelly intern) you accuse others of posting "unprofessional" posts, then you come here and post that - so you're a hypocrit too I see.

You really have no idea how a practice, that actually looks after its clients as opposed to treating them as cash cows, wrks have you !

And WHERE EXACTLY did I slag clients off for buying a new car ?

I DID point out that if they bought a BMW they would be foolish, and, after 40 years of owning, driving, and racing pretty much anything with an engine in it, I'm quite qualified to have an educated opinion on what is and isnt a good car.  Note I said IS, not "perceived as", there is a world of difference.

Now, perhaps as you critisize others for not being "£professional" you will guide us all to exactly where I "slagged of clients for buying new cars".

 

 

 

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By petersaxton
24th Feb 2011 14:29

What's the difference?

"have vastly increased what I charge to clients... yes, in some cases I have now quoted 100% more than I would have done... client has agreed and I have earnt more money... is this a bad thing then?"

What have you done differently? What were some example fees before and what are they now?

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By jaybee661
24th Feb 2011 18:51

... incredible...

c_d, I'm not quite sure where I've said anything unprofessional in that post to be honest but maybe you can enlighten me?

It was your post of 22nd February at 9.47am that you made those comments, maybe you should read them again.

Incidentally it might be worthwhile checking the spelling and grammar on your comments before you post them in future.

I have to say I thought this forum was for professional people making constructive comments about accountancy, but I'm obviously wrong, as c_d's posts clearly prove - totally insulting!

I have no idea how to run a practice, haven't I - well obviously if it's the done thing to tell your clients the car they've just bought is rubbish then yes, obviously I haven't a clue!

I will not be posting anything else on this thread as it's all getting rather childish!

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By petersaxton
24th Feb 2011 20:22

We'll never know

"I will not be posting anything else on this thread as it's all getting rather childish!"

It looks like we won't be finding out what he did differently to quote 100% more!

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