Confidence when pricing jobs

nicd1981

Morning everyone.
I would like to ask how you overcame the confidence issue when pricing up new jobs.
I only became an MIP in the last year and recently have had a few new clients contact me for costings for bookkeeping up to annual accounts.
I've sent over my costings, but one was not happy with the price quotes, even though I had heavily discounted (shes a family friend)
Is it just a case of putting the set prices on your website, so people know the costs before you quote.
Or have conviction and know what you are worth?
any tips would be thankfully received
N xx

MarieNoelle

Hi Nicola
I have a set of set fees for annual accounts, tax returns etc...but always quote "from xxx". I quoted last year a job for a sole trader who had assured me her bookkeeper had all the accounts up to date. It turned out that she had done everything manually, columns didn't add up, lots of mistakes in VAT returns so I had to redo all the bookkeeping from scratch. The job ended up costing 4 times as much as my initial quote but I kept the client informed and the final price was 1/2 of what she had paid her previous accountant so no hard feelings.

I am now very wary of quoting a fixed price and would say how much bookkeeping hours a job includes so clients know straight away that any extra hours I put would be charged. I also charge separately for extra advice on a particular point.

I guess the confidence will come with experience. I undercharged at start but I am now more confident to not underestimate my worth.

In your case if your client is unhappy with a quote it's her choice to turn it down and find somewhere cheaper. I wouldn't discount any further if you are going to lose money on that job.

nicd1981

Thank you marie for your response, I don't plan on going any lower.
I have already heavily discounted, and I know I was much lower than her previous accountant as she stated that when she booked me.
I've already done most of her bookkeeping as she gave me up til January when I collected her paperwork last week so id be really miffed if she asked for it back to go somewhere else, although ill charge her for what I have carried out to date.
But hey ho, you live and learn.
I agree though , confidence will come with time, I think working in industry does not really prepare you for the trials and tribulations of practice
N xx

traceygford

Hi Nicola, I'm also stuggling with this, just finished my 2nd year of being an MIP. Some clients just take up so much more time than others, usually the ones who don't like paying too! I've found the MIP fees survey really helpful. I have a copy I look at every time I quote for work and make sure I'm charging at least the average. I also break down my quote by saying it should be x number of hours at £x per hour, which allows me to increase the total cost if I spend more time than expected. I do find myself rounding down my time though, so I know I still have some way to go!
I think giving too much of a discount makes clients value your services less, so perhaps better to quote higher then they'll get a nice surprise when the invoice is lower. Should also filter out those who don't see the value of a good accountant

burg

I've just put the fees survey up for 2016 so feel free to take part. It really helps to see where you are at compared to others and price accordingly. Take a look - http://forums.aat.org.uk/discussion/442656/mip-fees-survey-2016#latest

Bookkeeping is far harder to quote for than accounts work in my opinion.
We have fixed monthly fees for accounts work and like to do so for bookkeeping. The prices have come through experience and from testing the market conditions. I review approx recovery on every job and see how it fits and how that should reflect fees for that client and similar clients going forward. In respect of market resistance if I find I'm still gaining loads of clients with little resistance to fees I increase them slighlty for new clients.

Bookkeeping I've stared to make an estimate of the time involved and agree a set fee. We then review over a period of around 3 months. The charges can then go up or down. We are also prepared to offer advice about what can keep the fees down such as filing tips, payment mehtod to be written on invoice etc.

It does come with experience and you will get it right. My personal opinion don't discount for anyone. The fees are the fees and we inform all clients we have a fee list like a menu if you want to pay less then what service are you willing to drop? Friends I really wouldn't discount as they usually end up wanting more tyhan normal clients and for less!

CeeJaySix

I know, disappointing isn't it?

MarieNoelle

mrme89 said:

There isn't a button for "incoherent spammy crap"

There is a spam button! Unfortunately if it's less than 10 of us flagging these posts as spam the moderators won't do anything about it....

CeeJaySix

Good mood today?

Monsoon

If you aren't confident with pricing, you need to fake it til you make it. Don't fall into the trap of pricing lowest to get the work or you will soon be a busy fool. A good client will pay what you want to charge. A client who is really only after the lowest price won't value your services.

Have a price list. Stick to it. Eventually it will feel more comfortable and you will realise that if you're confident and sell yourself well, people will say yes

MarieNoelle

@Monsoon is back!

Monsoon

Yeah, been a while! Still as blunt and to the point as ever, haha. Hola

James_B

mrme89 said:

Well the moderators do have a job on moderating such a large traffic forum..

MarieNoelle said:

mrme89 said:

There isn't a button for "incoherent spammy crap"

There is a spam button! Unfortunately if it's less than 10 of us flagging these posts as spam the moderators won't do anything about it....

Hi guys, you're right it could be better, so sorry for the slow reaction times. I'd be interested to know your thoughts on promoting experienced users to moderators, probably best to e-mail me if anyone would like to discuss further.

James.Brant@aat.org.uk

Thanks

burg

@mrme89 Thanks!

@James_B I have sent you an email

MarieNoelle

@James_B I have also sent you an email.

@mrme89 thank you, I think you could apply for the job as well as you are one of the most prolific contributor on the forum!

MarieNoelle

Too busy with the new puppy then