Insults, self-respect and selling by value

I had an email enquiry from someone who was concerned about possible tax liabilities should he sell a property he used to live in, but had let to tenants recently. There was one particular point he had got completely wrong. I wrote a reply as follows:

“Hi Fred (his name is not Fred)

Thank you for your enquiry. I think you are under several misapprehensions…

I should be pleased to advise you and give you estimates of any tax payable after renting out for 24 or 36 months and my fee would be £XXX (a fair professional fee) plus VAT.

Kind regards

Jon”

I received the following reply:

“Hi Jon

I appreciate you getting back to me. However, that charge is way above the figure I am looking to pay for what I understood to be 1-2 hours work.

Thanks anyway

Fred”

I responded:

“Thank you for your email, Fred. Although it was brief, it caused a sharp intake of breath this end.

From an employee’s point of view, they may think their hourly rate in a service industry reflects the value of the work provided, but the reality is that their employer has overheads and the cost to provide the service may be two or three times that hourly rate. Then there is the profit element since we all have to live.

I provide a service based on my expertise, the cost of my continuing professional development (CPD) which is obligatory for members of my professional bodies in practice, my office overheads, insurance, the services I buy in from others, and with a view to profit and tax which has to be paid. The CPD is pretty important in practical terms and there have been several changes to the taxation of let property announced even in the past year or so.

You would have had the benefit of a road map in order to plan the possible sale of your property (or to keep it), you would know the possible tax payable at various stages, be aware of all the tax reliefs which could be available and have reasonable certainty based on different outcomes. You would have had the benefit of all my long experience and learning. All this is of substantial value. One should always look at and understand the value rather than the cost of a service.

Oh, and to provide the answers to several “what ifs?”, outline the reliefs available and to put you right on your misapprehensions would have taken considerably more than one or two hours.

If you can get professional advice upon which you feel you can rely a lot more cheaply from someone else, that is fine, but you know the saying “if you pay peanuts…”

Regards

Jon”

We all know there is no point in doing unprofitable work and it does nothing for our self-respect if we provide a service which is simply not valued by our customer or client. It is much better to do less but more valuable work, and far more profitable too.

If we do not value ourselves, how are we to sell our value to others? We can certainly do without being insulted by those enquiring about our services.

Have you had this sort of comment in response to your quote for business?

Turning down work – really?

One of the mistakes many start-up businesses make is taking every project or job, no matter what. I made it myself.  It is very tempting to accept anything which comes along, but the new business owner needs to consider:

  • Is it within our expertise?
  • Will it be profitable?
  • Have we the capacity to do it?

If the answer to any of those questions is “no”, then we should decline politely.

Sometimes even more experienced business people can get this wrong too, and accept work which cannot be delivered satisfactorily. That may lead to damage to reputations. Never be afraid to say no. Feel able to refer another business for the work if you think they will be able to do it. That will make more friends too.

What does not make for a good reputation is a business owner saying “I will get back to you with an estimate or a quote” and then not doing that because they do not fancy doing the job. That is a good way of losing friends and again damaging reputation.

Never leave a prospect hanging. They will think more of you if you decline and tell them why.

If you can’t say something nice…

There are a few people you come across in the flesh or in social media are like Marmite. You either love them or you can’t stand them. There is really nothing in between. Yet if you really don’t like someone, perhaps it is better to keep your own counsel.

In a private forum recently I saw some unpleasant comments about someone I know well. I rather took against the commenter and the people who “liked” her comments. We Marmite lovers really get put off those who say nasty things about it, or make snide comments about our friends. Do not the naysayers know that they damage their reputation?

As Thumper said “If you can’t say something nice… don’t say nothing at all.”

Do you have a tax issue I can help you with? Get in touch and I will guide you.

“Thank you for your time”

That is something the TV news presenter says quite often to someone they have just interviewed. I think that phrase is a clue that they have not learned much from the interviewee; perhaps nothing at all which will help the viewers with an understanding of whatever subject was being discussed.

If the presenter had said “Thanks very much for your input, which was really interesting” then I think we can take it that the information gleaned was useful.

In the past I have to confess that a prospect might have said to me “Thank you for your time” after we had had a discussion about how I could help them. I now know it is a warning that I did not get my message across. Has anyone said it to you?

I always do my best to engage possible new clients in how their situation might be improved considerably if they went with me. If I hear that phrase, either I should ask before they go what they did not understand. Otherwise I think I should call back soon to clear up anything they did not understand.

“Thank you for your time” is the big brush-off, but we should not take it lying down. Follow up and clarify, and maybe not lose the business.

Bully clients

Most of us hate bullies. One day I might write about my school days if I can bear to think about it. At school we were largely trapped and felt there was little we could do about bullying.

In business we come across bullies too but we really do not have to put up with bad behaviour. I remember when I was an employee telephoning a client, someone quite famous, to tell him one of his companies owed a lot of tax because he had done something without asking us, his advisers, first. He shouted and raged and swore. I told him I would speak to him later when he felt better, and put the telephone down. Fortunately when I told my boss, he agreed I had done the right thing, so I had his full support. That guy had a poor track record for abusing our staff. My boss should have dumped him but probably the fees were too important to him and his fellow partners.

In my own business I do not put up with such people as clients. Usually on first meeting someone I get a feeling whether we can work together, but if later I do have any unanticipated “aggravation” I do not put up with it. I ask the client to go elsewhere.

No one should have to put up with bad language and bad behaviour from a client. You don’t, do you?

Do you have a tax issue I can help you with? Get in touch and I will guide you.

My Twitter for business rules

  • No politics
  • No following back of people using software to follow me
  • No following of people who just post quotes
  • No following of those who intend to be offensive whether with swear words or wind-up comments
  • Follow genuine likeable people
  • Follow people with quality postings
  • Follow people in my business unless they transgress another rule
  • Try to tweet valuable content but not news stories followers might have seen or can see for themselves.
  • Engage with those I follow and who follow me
  • Re-tweet posts of value

I have no compunction about unfollowing people who annoy me.

Oh, and keep the politics out of Facebook and other social media too. Thank you.

Do you have a tax issue I can help you with? Get in touch and I will guide you.

 

Never assume

When I started my first job, every bit of work I did was checked by a more experienced guy. I remember being asked why I had calculated a client’s dividends for his tax return without having evidence they had been paid. I said that I had assumed the shares relating to these dividends had not been sold, so the client must have had them. “Never assume” my colleague said. Although I was stung by his criticism, of course he was right and I was wrong. I should have checked with the client.

Assuming can get you into trouble. There is an accountancy joke “Why did the auditors cross the road?” “Because that’s what they did last year.” That is how mistakes are made, books are not checked properly, and those who are cooking them are not held to account.

In business generally, there are dangers in being comfortable and assuming all is right with our business practices. We need to check and check again we are being efficient. Perhaps above all, we should not assume that our customers are happy. Have we asked them? Everything may look fine from our side, but perhaps their expectations are different. It is too late to find out when they leave us. We should ask for feedback and talk to our clients regularly.

I try not to assume, but am only human after all. I have learned from my mistakes. What about you?

Do you have a tax issue I can help you with? Get in touch and I will guide you.

Banking on personal service

A friendly place lost to us

A friendly place lost to us

The local branch of my bank has closed. Gone are the friendly cashiers (tellers), the greetings (“Good Morning, Mr. Stow”), the feeling of being valued as a customer.

The other day I had to pay in some money and went to the big main branch in the larger town. There was one cashier, and otherwise the tills had been replaced with machines. One is supposed to post into a slot any cheques received, together with a slip. There is no human being with whom to interact.

I pay a fee for my business banking, but I do not now feel I am getting any sort of service for my money. I am one very unhappy customer.

My own business is based entirely on real relationships with my clients. I value them, and I hope they value me. I try to be available to them at all reasonable times, and they know that I am there to help. If they value me, they will be happy to pay me a good fee for a service which they are entitled to expect.

Small business is all about personal service and great relationships. Big business has lost sight of that and, while we cannot all open our own banks, our flexibility and friendly approach is to our great advantage in competing where we can.

Do you have a tax issue I can help you with? Get in touch and I will guide you.

How do I compete?

“How do I compete?”

That was a question recently put by an accountant who has another 125 accountants within a five mile radius. The easy answer might be “don’t”. Give in and do something else.

Then again, there is a lot of demand for accountancy services, but clearly plenty of supply.

The answer might be here:

  • The other accountants are not competitors but colleagues.
  • Do you have specialist areas in which you are strong and others might not be?
  • Can you sell your services to the others and outsource some of the work you are not good at or don’t like to them?
  • Can you concentrate on marketing your strong specialist areas to the public, making it clear you are different from the rest?

I am a tax guy, but I do not work in all areas of taxation. I specialise in landlord tax, capital gains on property, non-residents and a couple of other niches. Anything I do not like and am not good at, I simply do not do.

Do you stick to what you are good at? It is more enjoyable and more profitable too.

Do you have a tax issue I can help you with? Get in touch and I will guide you.

Rude and aggressive clients?

“Most clients and people in general I come across are just rude and aggressive.”

That is a statement I saw on an accounting website, posted by an accountant. I am surprised by the comment. Is everyone rude these days? Are they just rude to this accountant? What has he done (or not done) to deserve it? Has he got the wrong clients?

In my previous piece I mentioned a rather rude ex-client. I know it takes all sorts, but if I do not have a good relationship with a client, and feel comfortable working with her or him, I ask the client to go. Of course I find a good reason. “I know another business which would suit your type of work better.” “The profile of my business has changed and we cannot any longer offer you the service you deserve.” “I would need to double your fee”.

All these can end an unsatisfactory business relationship fairly amicably. Certainly I see no reason to put up with uncomfortable communication and rudeness. Why would anyone? You don’t, do you?

Do you have a tax issue I can help you with? Get in touch and I will guide you.