I had the opportunity to bid a on what I call a large client. The referral was given to me by a member of my sphere of influence. I met with the client and quickly understood what his successes, failures, challenges, and expectations were. Here are some buzz words/phrases I remember from the initial meeting:
- board does not accept extensions
- bills coming in 8 months late
- unexplained charges
- unresponsive CPA
- changing personnel
- unhappy
- complacent
So I return to my office and prepare a proposal for this client. The engagement called for nine form 990, three form 1120S, one form 1065, and three form 1040. I submit my proposal and it was denied in less than 24 hours. When I requested feedback, here are some buzz words/phrases I remember:
- Thankful
- Thorough
- Cost
- Fixed Price Agreements are not original
- more and more CPA are moving away from billable hour
- time tracking along with fixed price agreements are the way to go
- other proposals are less than my current CPA
- my proposal was 4 times my competitor
- my firm is not aligned with the local industry
My wife always reminds me that all things happen for a reason, and I truly believe that. The lesson here for me is: if I knew that cost was the number one factor, above the poor service, for changing CPA’s, I would have never pursued this client past the initial meeting. Great lesson for me.
Chris-
My wife too has reminded me many times that God often has bigger plans when gigs don’t work out. We never know what we are getting in to with our bids for new service.
I’ve often looked back and seen that at our time of growth in our firm, I wasn’t ready for a certain client. But I see it come back around… eventually.
Hang in there…
Jason
Chris,
Like both you and Jason my wife is very good at helping me see the bigger picture. Thanks for the post. I know we’ve all been there but it’s nice to hear someone else tell the story too. I try to remind myself that if some of my proposals aren’t getting denied I’m not learning much about the market or the boundaries of our service offerings.
Best,
Joey
Looks like you dodged a bullet there! It reminds me that there are three qualities an engagement may have, but a client may only pick two out of the three (quick, good, and cheap). I wonder which qualities they will find in their new whipping boy… I mean accountant.
Shane,
Great thought. He is looking for a whipping boy, never saw it that way.
Looks like our wives all play a big role in helping us think from beyond our company – it certainly helps.
But seriously, I never understood the comparison of price between a solution that we know didn’t work (their current CPA) and a new solution that might work (you.) It’s pretty much saying – well, I am paying $X for something that is broken but I am expecting to pay less for something that actually works. Human… such mysterious creatures.
The good thing about fixed prices (the way you did it) is that you get to the “bullshit or jellybeans?” moment really fast. Which in the long run means more jellybeans for you.
I love me some jellybelly budd. Thanks