On the latest episode of Dear Katie, someone asked me a very important question: “I need to start charging for tax planning. My clients currently have me do their tax returns and I prep them + offer tax advice all in one. How can I upsell these clients on tax planning, when right now I do it for free? I don’t want to turn them off, but I want to be paid my worth.”
First, I commend you for wanting to charge for your expertise. You deserve to be paid for tax planning.
And second, you’re not alone. A lot of people provide planning for free and want to find a way of upselling clients on these services.
So, the questions are:
As we’re wrapping up the end of the year, it’s the perfect time to put your packages together and have clients opt-in to your tax planning.
Right off the bat, I have to say that your approach and how you package your service’s value will be critical to upselling clients on your tax planning.
Communication is the key to upselling clients because you want them to know that it’s been a pleasure working with them. But it’s crucial to stress that you can and want to be able to help them more.
You want to:
Strategic tax planning – as you know – has many benefits, and if you can stress the benefits of year round tax planning and how it can save them money, it will pique many clients’ interest.
Once you sell the benefits of your tax planning, you can notify them of the packages you’re offering, which we’ll discuss next.
Now that clients understand the value you offer, you can present them with a list of packages to choose from.
When sharing your packages, make sure that you clarify:
Be honest when recommending a package for your client. If your base package will meet their needs and goals, then recommend it.
Depending on what you’re offering, your packages could look something like this:
For all of these package ideas, here are a few things to keep in mind:
AND it’ll help your clients understand why you recommend the package you recommend.
But Katie – what if my base package is significantly more than what I was previously charging?
Fair question!
And I would say that you have two options.
Or
I know how challenging it can be to broach the subject of raising rates or charging for a service that you once offered for free. However, you deserve to be paid your worth and not a cent less.
The key is to ensure that you’re focused on communicating the enhanced value and benefits of tax planning. When creating your packages, make sure that you not only outline what each one includes but also highlight the benefits they offer.
Transparent pricing and a focus on value will help ease the transition and convince more clients to jump on board.
And, that’s a wrap on this Dear Katie question.
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Now I want to hear from you. Do you have a question?
Until next time, cheers to your success!
Katie
Start by explaining the benefits of year-round tax planning, such as potential savings and strategic advantages. Make it clear that your goal is to help them maximize their financial outcomes.
Outline each package clearly, detailing what it includes, the benefits, and how many planning sessions are offered. Be honest in recommending the best option for your client’s needs.
Communicate openly about the changes. Emphasize the enhanced value of your new packages and explain that comprehensive planning is essential for better financial outcomes.
You can either offer a new standalone tax return preparation service at a higher rate or explain that tax preparation will now only be available with a planning package.
Focus on transparent pricing and highlight the added value of the comprehensive services you provide. This will help clients see the worth of what they are paying for.
Communicate the benefits clearly, provide options for different packages, and reassure them that your goal is to enhance their financial success through strategic planning.