H & R Block estimate

[GeorgeM]

Attached is an estimate from H & R Block online http://www.hrblock.com/taxes/doing_my_taxes/price_estimator.html

BLOCK ESTIMATE.pdf

[Crank]

Thanks George. Wow, They are >50% more than what I charge for the forms noted and in the case of the 1040 alone >200% more. ($100 vs my $30).

And today I got a complaint for charging $70 total for a 1040 & Sch C, pa state & a local return with efiles included.

[Kimberly K]

Thanks George. Wow, They are >50% more than what I charge for the forms noted and in the case of the 1040 alone >200% more. ($100 vs my $30).

And today I got a complaint for charging $70 total for a 1040 & Sch C, pa state & a local return with efiles included.

Crank, I think you need to bump up your fees. For the above forms I would have charged $147 and I also live in Pa.

Thanks George, for the estimate, I was hoping my fees were about half of the evil empire!

[GeorgeM]

By the way these prices were based on me entering my CT zip code.

I would guess that other areas would be either higher or lower.

Also if I am correct they charge extra for extra W2 forms, extra dependents, extra dividend statements and any other extras they can get.

[Crank]

Crank, I think you need to bump up your fees. For the above forms I would have charged $147 and I also live in Pa.

Bert, I think you are right and I am going to up them this year. But I have such a hard time getting new business since I work out of an office in my home with no signage or advertising that I want to keep who I already have.

[Kea]

Crank --

I feel you should charge what you are comfortable charging to give you the profit you want. Look how much lower your expenses are by not advertising or paying for a separate office space.

[mcb39]

I agree with Kea and Crank....my business is based on good and thorough service for those who can least afford it; rather than on a huge profit for me. I am happy with what I make and I am also happy with all the smiles, hugs, thank yous' and homemade gifts; more than I can say. I, also, work in a home office by myself and don't have a terrible overhead. I pass that on to my clients and have as much business as I can handle by myself. Sometimes, more.

I had a client call the other night and tell me that I knew more about her personal life and finances than anyone other than her husband. She added, "But, I would trust you with anything, and thank you so much for everything you have done for us." How do you put a price on that?

Working on Sunday!!

[Crank]

I do a few returns, tax / rent rebates for NC. They are long time clients who have fallen on extremely hard times. And I know that when they get back on their feet they will return as a paying client.

Also, last year I had a few that I told to pay me when and if you can (i did reduce the fee too). Those people did finally pay me in full later in the year ... and I wouldnt have sent out an invoice if they didnt pay.

I feel that some poeple just need / deserve the extra help / kindness and someday helping others will come back to you many times over. Either that or Im a sucker ... lol

BTW Marilyn ... love the vanity plate.

[Catherine]

I think we all do that. I have a couple of seniors on very limited incomes whom I bill at a reduced rate and then give my "senior discount" to -- but I double the discount. Saves their pride when they think it's a "standard" discount given to all in their age range. And there are a number of pro bono returns I do every year -- a widow with two children and similar situations. I get cookies and thank-you notes - those mean a LOT. Plus some that I tell to pay when they can.

I've found over the years, though, that the people who come _in_ with a sob story in order to get a reduced fee are the ones who give a bad check and never make good on it. Likely we've all been burned that way once or twice.

And there isn't enough money (that they'll pay me, anyway) to make some people's business worth the aggravation.

[mcb39]

You pretty much "nailed" it., on all counts. People with contrived sob stories get to come in with CASH before I will even start their returns. It is the people who I know have difficult situations, yet, never complain, who get the discounts and pro bono.

[kcjenkins]

I think we all give special rates to some, but I also think that we should all start with a fair price list, and charge it to all, and THEN we can show a discount where it is applicable. This does two things. It lets those we do discount know how much we are giving them, and it avoids them sending us others expecting the same low rate. Plus, if their situation improves, we can remove or reduce the 'discount' without shocking them so much. We need to be fair to ourselves and our families too, you know.

PS For those we charge a fair price, who COMPLAIN about that price, their fee should go UP for sure. Why put up with that aggravation, unless they pay dearly for the right to do so?

[Catherine]

I agree completely. Even my pro bono's get an invoice with the price, and a discount to zero it out. The only ones I don't do that for are a couple of elderly couples with low income but high pride.

And your last paragraph is why a half-dozen clients got letters stating 25% increases after a "complete re-evaluation of our fee structure". With any luck, I'll never hear from that group again.

[Margaret CPA in OH]

Catherine, I love the idea of a "complete re-evaluation of our fee structure." What a great phrase! I will definitely use that next year as I decided, somewhat reluctantly, to hold the line this year again. It IS time for a complete re-evaluation! I doubt 25% will be the amount but it may very well be darn close! And I love the idea of losing half the clients at double the price leaving half the work for the same income. I think, if I really, really tried, that I could honestly live with that result.

[kcjenkins]

At a bare minimum, consider either firing or raising the prices sharply on you bottom [in terms of how you like them as clients] 10% each year. If you lose half of them, and get the higher fees on half, you have the same revenue, but half the aggravation. Do this each year for 5 years, and you should be down to an only slightly smaller client list, but with higher revenue, and most important, a greatly decreased level of stress and aggravation, as it's only about 5% on average, that cause 90% of the stress. You will work happier, and more productively, without that stress, and your bank balance will improve as well.

Don't count on it reducing your client list too much, tho, often you will just find time to add some new, better-paying clients in their place. Especially if you ask your 'best' clients for referrals.