Unit 32 offering discounts to new clients.

jilbo

Help. I have almost completed practice simulation 1 for professional ethics unit 32 but am stuck on one thing.

I have to comment on the following suggestion for gaining new clients:

‘Offer a 25% discount for the first year to all new clients’

I have read through the FTC text book and the AAT's guidelines and can't find anything to help me. My initial thought is that it is ok as it is only the new client that is to benefit.

Any comments would be greatly appreciated.

Richard

You would need to make it clear to the client that the 25% discount is based on the fee the company would normally charge, this will avoid any confusion if the client believes you are charging 25% less than their previous accountant.