Am I overpriced?
stefanboro
Registered Posts: 187 Dedicated contributor 🦉
Just had a call from a guy who is not happy with his current accountant.
He's just set up a limited company recently. Prior to that he was a sole trader. He and his wife are directors and recieve a small salary.
So, for this, I will need to do:
1. CT600
2. x2 SA100's
3. PAYE Year End
4. Company secretarial returns
As a ball park figure I quoted him a price of £45 per month so £540 per year for it all. Knowing what other people charge I think I am still VERY cheap.
He was then adamant that his current accountant is only charging £240 per year. I questioned him to make sure this wasn't the old fee for the sole trader set up and I told him to make sure that price included all of the above returns. He seemed a little bit
but said that he doesn't mind paying the money as long as he gets peace of mind.
I thought I was offering him a bargain. I know you will always get the £0 "accountant" who your mate down the pub knows but..... well I am questioning myself. Surely my rate was competitive here? Anyone??
He's just set up a limited company recently. Prior to that he was a sole trader. He and his wife are directors and recieve a small salary.
So, for this, I will need to do:
1. CT600
2. x2 SA100's
3. PAYE Year End
4. Company secretarial returns
As a ball park figure I quoted him a price of £45 per month so £540 per year for it all. Knowing what other people charge I think I am still VERY cheap.
He was then adamant that his current accountant is only charging £240 per year. I questioned him to make sure this wasn't the old fee for the sole trader set up and I told him to make sure that price included all of the above returns. He seemed a little bit
but said that he doesn't mind paying the money as long as he gets peace of mind.I thought I was offering him a bargain. I know you will always get the £0 "accountant" who your mate down the pub knows but..... well I am questioning myself. Surely my rate was competitive here? Anyone??
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Comments
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I would have charged three times that to be honest, but I'm in South West London.
£240? Jog on..0 -
stefanboro wrote: »Just had a call from a guy who is not happy with his current accountant.
He was then adamant that his current accountant is only charging £240 per year.
I think you've answered your own question
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Thanks guys - I thought I was cheap too but my perception of the market can be blinkered. The North East might be a depressed area but business is business and I know that I need to look at increasing my prices as I expand. But £240??? May as well go back to being a waiter.0
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I think you've answered your own question
That's exactly what I was thinking; there's a very good reason why his current accountant isn't giving him a good service!
£45pcm is by no means a high price mate. I had a client last year come to me (they have two businesses which trade under the one LTD co. and have joint turnover of about £200k), they were paying their 'qbe' accountant about £500 for the year so when I quoted £1,200 (still very cheap!) they baulked, but decided to give us a go when I pointed out that they hadn't been happy with a £500 service.
18 months later, I'm still their accountant and we have a great working relationship!0 -
I am based in Lancashire and would have charged in the region of £1,000 plus VAT for services listed. I know its hard when starting as you want to attract new business but its is also important you dont get stuck with too many low fee clients who moan when you start to try and increase your prices.
I would say at that quote you are underselling yourself, we charge min £700 just for Ltd Accs & CT600.
Good Luck0 -
Guys guys I know I'm cheap - stop kicking me :laugh:
I just could not understand the £240 thing. And as I said, I am looking to increase my prices over the next year.0 -
Forget him. You don't want clients who are price conscious to the point of being ludicrous.
Everyone else has beaten me to it.
And yes, you're cheap
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Far too cheap. Sorry... have we covered that? :001_tt2:
Mark Wickersham wrote in one of his pricing books that a client who joins you because of your price will, eventually, also leave you because of your price; there will always be someone willing to do it cheaper! Whereas someone who joins you because of your quality of service will be far more loyal, even if your prices need to go up, because they'll appreciate the value that you bring to their business.0 -
Too cheap! Sorry had that already been mentioned? :001_tongue:
I'd be quoting £650 and I thought I was cheap!0 -
Far too cheap. Sorry... have we covered that? :001_tt2:
Mark Wickersham wrote in one of his pricing books that a client who joins you because of your price will, eventually, also leave you because of your price; there will always be someone willing to do it cheaper! Whereas someone who joins you because of your quality of service will be far more loyal, even if your prices need to go up, because they'll appreciate the value that you bring to their business.
If you've never had a prospect say "ooh, that's a bit more than I was expecting" or "how much?!" then you're probably too cheap. That's the best thing I've taken away from Wickersham's stuff that I've read.
On that note, I'm still probably too cheap, and I'd be in the £900 mark for that job.0 -
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I would have quoted about £750 and i know my fees are very cost effective, I charge for additional work £50 per hour0
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