This blog is about all matters business and personal of a sole practitioner. I have a practice with one member of staff.
How can anyone quote such low fees?
The tax returns season has produced a steady stream of enquires through my website. Unlike last year my success rate at getting these clients is 0%. This is because the fees I quote are not competitive.
I have not done a fees survey in my locality. The feedback from potential clients is a clear message I need to change my pricing to keep up with the competition. My fees are about 30% to 50% higher.
I am shocked how my competitors can justify such low fees. Does the low pricing mean they have to work so much harder to get a reasonable return? How can you afford to give clients the attention when requested?
Am I missing something here? Do I need to think more about efficiencies? To make massive improvement in compliance work assembly line to halve the time it takes to complete the work?
Worse still a quick search on the net depressed me even further. The fees for sausage machine tax returns were far lower than I expected. How do they make money? The fact they are in business means they do make money.
What is it that I am missing? If I were to match those fees, it just would not be worthwhile to be in practice.