We’ve been receiving great questions from our viewers here. Please keep them coming. We respond to all questions by email and some will appear here on our weekly strategy session. On this weeks session, I’ll answer a question from Bradd from Oklahoma. He asked for help on how he can expand his clientele. He’s been in business for 8 years. His challenge is his advertising budget. Brad has a website and he is home-based and mobile. He has business cards, pens and a magnetic door sign on his car. He also has a Facebook page that he posts on during the tax season.
I took a look at Brads' website and my first reaction was that his prices were too low. I can tell that Bradd is someone who cares about his customers. He goes above and beyond what many others do. And yet he is charging between $50 and $75 for a 1040. He does charge additional for other forms. My guess would be that his overall average fee is under $100 per return. According to a survey by the National Society of Accountants, the average fee for a 1040 without itemizations is $159. The average fee for an itemized tax return is $273 according to the same study. Bradd, double your fees. Compete on value and not price. You will lose some customers however you’ll gain time to work on business development and more importantly drastically increase your revenue. I’m not saying to overcharge, there are other providers out there that charge $700-$900 for a simple tax return. That’s not cool either. Increasing your revenue will help you to increase your advertising budget which will, in turn, increase your client base if you execute on it properly.
I also took a look at Bradd’s Facebook page. It has no cover photo and only 6 posts during this past tax season. And only 13 likes. The posts were mostly links to boring tax stuff that clients can’t relate to. If you are using Facebook to market for tax customers, your posts need to be consumer based and interesting. Invest in targeted Facebook ads to increase your likes in your community.
Finally, doing everything yourself is not that effective. Spending time on marketing and providing exceptional customer service is a much better use of time rather than doing all the tax returns yourself, creating all of your advertising campaigns yourself and doing it all by yourself. I know that as I did it all by my self when I started in this business. That's the bad way, then the good way which is leveraging other peoples help and assistance to do things for you which is hiring costly employees. Finally, there’s the Happy way, where a Happy Tax franchisee can work on their business instead of in their business. All returns are prepared by our own Happy CPA’s while you focus on making money. We provide all of the marketing campaigns pre-done for you to execute on. If you haven’t read it yet, I highly recommend the Book The E-Myth from Michael Gerber. Bradd, I’m sending you a copy. I strongly urge you to give us a call and see how Happy Tax can help you start or grow your business with less headaches and more benefits. Your time is valuable, we never get it back once we spend it.
Thank you for listening. Have a wonderful and productive rest of the week and take care.
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