Unbelievable Prospective Client

[Crank]

We all get them. The prospective client who wastes your time or refuses to take your advice for his own good. I just had to share this one.

This guy calls me yesterday wanting to know what I charge to do a Federal return. That's the first warning sign for me. People who say "I can do the state and local returns myself", because they are looking to save some money. So I tell this guy that my fee's are based on what forms are needed and I proceed to ask him some questions about his situation so I can give him a ball park number on the overall fee. During this I find out that he has been doing his returns himself and over the past 4 years.

In addition to his regular w-2 job he has been doing some work on the side which he was paid with a 1099-Misc(about $4,000). He has just been including the gross amount without taking any offsetting expenses.

So after I tell him my fee would be about $150 for a 1040, A, B, C, M, ,SE, 5695 & E-File (cheap right and I'm a CPA) he says it too expensive and he's only pay's $20 to do his federal return online somewhere (I wasnt really paying attention where ... lol). I guess he wanted me to beat the $20. So I explain to him that I would be saving him significant dollars that would MORE than cover my fee since he is overpaying by not taking his expenses against the 1099-Misc income but he responds that he'd be crazy to pay me that much money. Even told him that I can amend past returns and he would come out ahead after my fee's but he wasn't buying it. Some people amaze me!

I keep a log of prospective clients each year with notes. The final line in his note said, "I don't expect him to return as a client. Isn't the sharpest tool in the shed but still a tool none the less!" :spaz:

[JohnH]

You could have told him that paying for tax prep is a lot like buying oats. For a reasonable price you can provide him good oats. But if price is the only thing he's interested in, then he will have to settle for oats that have already been through the horse.

[OldJack]

John, I really like the oat reply. Good one! :lol:

[Catherine]

John, I really like the oat reply. Good one!

Great reply!

But this guy sure sounds too dumb to pour sand out of a boot with the directions written on the heel.

[Margaret CPA in OH]

This is a great environment to learn so very many things. I love the oats comment and will eagerly look for an opportunity to use it. And the sand in the boot - now that's dumb! So sad that we actually encounter those folks, isn't it?

[jainen]

>>He has just been including the gross amount without taking any offsetting expenses.<<

If you believe that, I've got a great investment for you--a golden bridge here in California. You'll get $6.00 for every car that crosses!

In my experience, it's just the opposite (all the expenses without the income). So in my opinion, you were probably not talking to a prospective client, but a prospective competitor.