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just a general query really, I recently have been asked by an accountant to make contact with a business as they are looking for a bookkeeper, so contact was made and I quoted him my hourly rate, to which he replied his accountant told him bookkeepers generally charge between £10 and £12 ph?
so my query is this;
would you work for £10/£12ph? or do you know anyone that does?
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Think it depends what part of the country you are in Stacey. Also depends on what level.
I think, personally, if you are struggling to find clients and this is self employed rate then fine at associate level.
The thing that is always at the back of my mind when quoting my rate is an employed bookkeeper would earn around £8.00 per hour before tax up here in Scotland, but remembering to factor in holiday pay Emp NI etc.
As a practice licence holder we have to count in insurance, licence fee, software, etc.
If it was the accountant looking to sub contract I would say yes at £12.00 because of ongoing work, but no to a business. I would probably apologise and explain why my rate is that amount but walk away if need be.
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yes I can see where you are coming from liz, I am in the midlands, the job is for a business not as a sub-contract job (I currently sub-contract for an accountant so would have accepted if other work was available, however this is just 1 job.) I have explained to the business why my rate is why it is and if thats is too high then to look elsewhere (in a polite way of course) and am waiting for a reply.
thank you for your response.
stacey
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Hi Stacy
In my humble opinion I would look at the rate I usually charge then if it is not 100 miles away and I liked the person I would consider taking it on then review my fees after say 6 months and increase them a modest amount and keep doing this 6 monthly until i got the fee to where i wanted it.
Cheers
Stuart
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- Fellow PM.Dip
- Practice Licence
- 336 posts
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Funnily enough I was about to post a question to fellow bookkeepers on this very subject! I am a newly qualified bookkeeper looking for my first private client (I also work part -time as an employee doing the bookkeeping for a small company and am paid a relatively low amount for it.) I took advice from a couple of local accountants who recommended £14-15 per hour. I had my first enquiry last night from a prospective client, and when I quoted him £14 he said he would call me back and he never did. I don't want to put people off by quoting this rate, but I also don't want to work for peanuts as it has cost me a lot of money to get the qualifications I now have, plus the license fee, plus the insurance etc. Do I sit tight at this rate and wait for someone to agree to it, or should I tempt people with a lower rate? I see the point that Stuart is making, but I live in a very remote part of the world and I am going to have to travel up to an hour if I want a reasonable catchment area. What do you all think?
Yours frustratedly,
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I would say we shouldn't sell ourselves cheap, but if the case of putting food on the table we have to make rashonial decisions. I live in london got a freephone number and a snazzy website, on yell and thomson local and I can't even seem to generate a first customer.
Make me think during the recesion be gratefull for small mercies
Edited at 09 Jun 2011 05:30 PM GMT
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Mr H said:
If the system aint broke don't try to fix it, just tweak it a little
Edited at 09 Jun 2011 05:30 PM GMT”
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Sometimes our perception of what we are worth is not the same as our clients and vice versa.
Quotes will often be given and you don't get any further. Prospective clients will try to get information from you and then not come back.
When I take on a self assessment client my initial consultation usually takes two hours. As well as coffee breaks I make sure I leave no stone unturned. I used to charge only when I had provided draft accounts - but had a client recently who decided that their tax refund wasn't high enough and asked for their papers back. It wasn't worth the argument to get the modest fee.
Now I tell clients that they get the consultation for half of the overall cost and if they proceed then that will be offset against the final invoice. If they don’t proceed then I have still got some money.
After all I have given my time and I am not a charity.
I gave a quote in February to a solicitor who didn’t want to pay my £20 charge per visit for travelling - at least an hour stuck in traffic jams. Two visits a month, £40 - and he probably charges £200 an hour. When he called me two months after the initial visit, still asking if there was any movement in my quote I suggested that I wasn’t the person for his firm.
He is still advertising nearly four months after the first contact - and it is not surprising.
The bottom line is - don't be greedy, don't sell yourself short, be patient and think of clients as long term prospects and not short term bank balance.
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- Fellow PM.Dip
- Practice Licence
- 17 posts
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Hi Stacey
It is worth talking to other qualified bookkeepers n your area to find out what they are charging so that your hourly rate can be in the same area and be at a competitive level.
My experience of accountants is that the bookkeeping is offered as a service but not promoted and is perhaps a loss leader and any mney is made on the year end and tax work.
Also look at networking events in the area and regurlay attend as this may be a source of business.
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the average hourly rate where I am is £17.50 + VAT I did my research on a few bookkeepers and accountants in my area before setting a rate, thanks for all your replies
stacey
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- Fellow
- Practice Licence
- 1 post
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I used to have no sales with prospects calling and asking for my price. I learned the hard way that this just doesn't work. I now refuse to give my price over the phone, instead making an appointment to see them, and going over the work with them. I sell them then on my strong points, and once we've agreed that I am the right person for the job (providing this is really the case) only then do I tell them the price. If there is any objection, I handle that by going over the strong points again, and our agreement. This usually handles it!
Getting new customers really does require training on selling! It is a technique in itself and if you're not a natural at it (like me) then you need to learn these techniques.
Providing you're not pricing yourself out of business, if your rates are competitive, then the rest is just sales techniques!
Hope this helps.
Lisa
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