Discussion:Giving client fee discount due to lack of service
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Wkstaxprep (talk|edits) said: | 5 March 2007 |
| One of my clients who i've been doing her return for about 6 years now and she has been happy with my services, mentioned to me that she was dissappointed i did not return a few of her calls last summer regarding her taxes (she retired and i told her i would advise her on proper withholding amounts based on retirement income). I did not call her back right away and then totally forgot about it (summer laziness?) she mentioned to me this year when i met with her that she was surprised i didn't call her back. I'm 100% in the wrong as a pride myself on returning calls promptly.
my question is i want to give a something off the fee this year just as a good faith gesture to her so that we can continue our good business relationship in the future. is this a bad idea? | |
| March 5, 2007 | |
| Depends what she pays you each year.
She is back, so she is loyal. I'd maybe send some flowers with a hand written note telling her you are sorry, dedicated, and appreciate her business. | |
| March 5, 2007 | |
| Do it, you screwed up...I have to tell you, I'm not the sharpest guy around (ahem, like most of you haven't figured that out yet), but do you want to know how many clients I have because I return phone calls, emails, faxes, bird drops, etc. Well, not the bird drops...This is the most important thing you can do. | |
Wkstaxprep (talk|edits) said: | 5 March 2007 |
| ok, what would be an amount that she would realize my appreciation $50 ? | |
| March 5, 2007 | |
| Depends on your fees...I'm probably 350 for an avg return, and might discount it 75-100...but that's just me talking out loud. | |
| 5 March 2007 | |
| I try not to correct deficiencies with discounts. My discounts are based on financial hardship, referrals etc. I'm more of the opinion to give the clients what they want, within reason. If she wants communication, give her communication. Review the withholding, write a letter with your suggestions and your apology. Offer to review her income/expense stream to minimize her tax liability. For example, I have suggested to older retired clients to donate appreciated stock instead of cash.
The point is that, what's more important is correcting the problem (Use your Contact software) and sincerely apologizing. If an apology equates to cash for your client, so be it. Just remember, it wasn't the fee that she was upset about. | |
| March 5, 2007 | |
| Yea, it depends on your original fee. For me, it would be around $20 (but my fees are reasonable), and I'm thinking she's probably a $100-$120 client. | |
Bottom Line (talk|edits) said: | 5 March 2007 |
| Definitely do a discount. You'll win back what you lost with interest | |
| March 5, 2007 | |
| Are you suggesting that MY fees aren't reasonable, Deb??? Hey, I went to Notre Dame for cryin' out loud, not one of them pathetic state schools across the pond...are I worth it? (Even if you have more right answers....?) | |
| 5 March 2007 | |
| I checked the score board on posts, and while Deb has more right answers, JR has left more posts. | |
| 5 March 2007 | |
| HP has some good advice there, [not that others don't, folks are getting sensitive now adays, can't be to careful:)]. Not everyone is impressed with discounts, I try to give them what they ask for. | |
Rgtaxservice (talk|edits) said: | 5 March 2007 |
| What lack of service? You prepared her return last year and you were paid for it. She called after season and you forgot to call back. Was it intentional? No.
A sincere and heartfelt apology is definately in order. It was a mistake. No more no less. Since when to do we feel that we need to 'refund' for our failings? If a client shows up 15 minutes late for an appointment, they apologize but they don't grease a $20 in my palm. When a client takes forevverrrrr to get the documents I request/require there's never a C-note attached to the documents in the Fed-Ex package. Just a regular note: "Sorry it took so long".
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| 5 March 2007 | |
| Personally, I wouldn't discount the fee. I would send a heartfelt card and maybe a box of chocolates, flowers, something small just to say how you appreciate her as a client and apologize for any inconvenience you caused her. Usually, a handwritten heartfelt card goes a long way. In five years, your client will likely remember the card and small gift of thanks (or oops, I am sorry) then her $20 or $50 discount anyway.
Plus, I learned long ago that most people don't appreciate discounts, but they are quick to notice when their bill has increased $50 or $100 or more from the year before. Never discount. Never negotiate. That's just my motto. | |
| 5 March 2007 | |
| I agree with RG Tax no discount . Do not think they will appreciate it. Dani has a good approach but personally I would not do it | |
| March 5, 2007 | |
| Actually, in real life, I wouldn't give the client a discount on her fees. I would just tell her my answering machine wasn't working for awhile, and sorry, I didn't get her message(s). | |
| March 5, 2007 | |
| No, JR, I wasn't saying your fees are unreasonable. I was just saying that mine are. I have several returns that are over $300, but those are the returns that take more than an hour to prepare. | |
| March 5, 2007 | |
| I agree. I would apology for failing to return her call, but she should have called back if it was important, everyone forgets sometimes. | |
| March 5, 2007 | |
| "a few of her calls"...she did call back. *up on the soapbox* If you want to be considered a professional, it's about a lot more than knowledge. It's about taking responsibility for your own actions, and about having some compassion for others, and an eye toward long term relationships. I don't like the idea of lying, blaming the client when it's not their fault, refusing to acknowledge your error, or even doing something decent. Stand up, do the right things, and it will go very well for you over the years. Shortcut that...well, it's on your own head, then, isn't it. *off box* | |
| March 5, 2007 | |
| Sorry, I didn't notice "a few of her calls" Just thought she called once. That was not very professional. | |
| March 5, 2007 | |
| I agree, JR. What I said the last time in this thread would not have been lying. The only reason why I wouldn't have called her back was if my answering machine wasn't working. So, that would have been the truth. I just didn't have time to 'splain it all in my last msg. | |
| March 5, 2007 | |
| I don't think I would give a discount either. If there's a potential for penalties, I might offer to pay them. Otherwise I would probably buy her a small plant. As someone else mentioned, she will probably remember that a lot longer than a discount. Besides, she may not even connect the discount with the "lack of service." | |
| 6 March 2007 | |
| No discount. Send her a gift card to Starbucks or somewhere in lieu of the discount, along with the apology. The discount won't be remembered next year, but the gift card will. With the discount, all that will be remembered is, last year I paid $270 ($300 minus $30) this year you billed me $315 ($300 X 105%). Why did my fee go up 17% (not 5%). | |
Wkstaxprep (talk|edits) said: | 8 March 2007 |
| gave client return and gave her the tax bill and reduced it by $50 and told her i feel bad about not calling you back and i dont want you to think next time you call me i won't get back to you because i pride myself on returning clients calls promptly. i also mentioned that i want to make sure we keep our good busines relationship for the future.
she thought it was a sweet gesture and gladly paid me the reduced fee :) Will | |
| March 8, 2007 | |
| Good for you, Will! A lot depends on how you handle it, what you feel comfortable with, and the type of client you have. Sounds like it worked out very well. | |
