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Carrot Approach
Very interesting article Mark.
I've always thought you need to give them the 'if you came on board we would look at this tax saving thing or that profit improvement thing' without ever giving them the advice.
Carrot sort of approach. Completely agree that if you start the relationship by giving out advice for free you're training that client to not put value on your time before they've even become a client!
Aim to have a maximum time allocated for each initial meeting based on the size and value of the client - e.g. personal tax return - 30 minutes, potential Audit for a £6M business - an hour (at least!).
Bundling services is great when it comes to initial enquiries as you are able to say, our fees start from £X per month. If the potential new client balks at that figure you know they're probably not suited to the firm.
I don't think
any Accountant would give "advice" for free. Once you are talking you know instinctively if the prospect is coming on board. Then, once you've registered them online, it's all stations go.
So Mark, we go from "emotional intelligence" to "scarcity mindset". Can't wait for "Numerological Blindness" or even "over active restriction controls".
We generally don't give free advice.
The article seems to misunderstand what happens at initial meetings. I don't give out free advice, I review the client's documentation and discuss what is needed. Then I give them a quote to do that work. I reckon the vast majority of accountants do this at the free initial meeting, not give out free advice. Also, accountants are right to have a scarcity mindset. Leads are not easy to come by without spending a lot of time and money on marketing. Recommendations from existing clients will only generate the occasional lead. Furthermore, the comparison with lawyers is a false one, as they tend to have one-off clients, and so it is not worth investing in free initial consultations. Accountants can get repeat work that could go on for decades, and so it is well worth spending time on initial consultations.
No regrets
Have always offered free first interview. First (instant) impressions are important and it is easy to determine if it worth going far with the first meeting. The first three minutes tend to determine the outcome. It is simple to end it quickly and politely if we are not the right fit for their requirements/attitude/expectations/budget. We are usually happy to refer them up or down in these circumstances.
If they are good prospects the time spent getting to know them without the pressure of the clock ticking is a very fulfilling and worthwhile investment.
Standard Fixed Fee Checklist of requirements
I have always offered free advice and been caught too many times by "giving away the crown jewels" for nothing. So now its still free but before too long I whip out the preprinted form and fixed fee checklist that starts at £500. That soon sorts out the time wasters.
Then the ones I want have the £500 waived and we discuss the costs of the items on the checklist or other services required.
Very interesting point
Mark. I certainly assume that most Accountants operate the same way as me. That's because I was trained the "right" way and that together with my out going personality allows me to develop my business. Having been in Accountancy for 50 years I actually know what you have to have to be in practice. Your articles make me feel that there are people practicing out there that really should still be in training.
"the first hour is free"
I'm retired now, but I never ceased to be amazed at the new clients who had heard, and believed "The first hour is free". It wasn't.
I always used to ask for a copy of the previous accounts before taking on a client, possibly before the meeting. There was one valuable piece of information- the accountancy charge!