TaxCoach Briefs:    Volume 7, No. 5

February 2, 2012

In this week's issue:

• Marketing Minute: How to Succeed in a Down Economy
• TaxCoach University: New Classes for February
• New Stuff: Marketing Postcard; Client Survey

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MARKETING MINUTE (EAL)
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HOW TO SUCCEED IN A DOWN ECONOMY

Today is February 2nd. Mitt Romney came out of his hole and saw his shadow, which means he'll have six more weeks of Newt Gingrich.

Have you noticed how bad our economy sucks right now? Yeah, yeah, unemployment is down . . . a bit . . . to 8.5%! The stock market is stuck where it was back sometime in the Clinton administration. And your prospects and clients are struggling with their businesses and struggling to pay your bills.

Washington doesn't seem to have much of a clue. We're heading into what promises to be the ugliest presidential election in memory. At least we're getting a little comic relief. Watching Mitt Romney try to escape from his past positions is like watching Liam neeson in that movie about wolves. And Rick Perry's whole campaign just seemed like nothing more than one long extended Saturday Night Live skit.

If you want to survive and thrive in today's economy, you can't wait for someone else to bail you out. Fortunately, you don't have to. You can do it all by yourself! So today I'm going to talk about how your most successful TaxCoach peers are doing just that.

First, let's step back and take a look at the broader economy. Who's just scraping by, and who's doing well? Generally, commodity businesses that serve the middle class are struggling. Mid-priced chain restaurants, for example, are struggling, with some on the verge of bankruptcy. Does America really need Applebee's, Friday's, Ruby Tuesday's, Max & Erma's, O'Charley's, Bennigan's, Chili's, and the Olive Garden? Big box retailers are similarly struggling, with some — most prominently Sears/K-Mart — on the verge of bankruptcy. Managers at appliance retailer Best Buy complain that customers walk into stores, tie up their sales staff's time, then check their smartphones for cheaper prices online. (That's an ironic complaint, coming from a place called Best Buy.)

At the same time, high-end retailers are doing well. Those who sell unique and luxury items are thriving. (Apparently, Newt Gingrich isn't the only one with a half-million dollar line of credit at Tiffany's.)

How does all of that apply to us? I'm not here to suggest that the way to succeed in a down economy is simply to move upscale — although that is good advice. But here are three lessons worth considering:

1. Consumers are more willing to pay for something they really want than they are to pay for something they merely need.

2. Consumers are willing to pay more for something they really want than for something they merely need. (This is not the same lesson as #1, above.)

3. Finally, consumers are more willing to pay for something unique and distinctive than they are for a commodity.

With me so far? OK, good, so how does that apply to tax businesses?

Most of us are entering our busiest time of the year. Now through April 15 it's "tax time," and clients know they need to file their taxes. But there's no shortage of other places they can go to file their taxes. TurboTax and H&R Block are filling airwaves with advertisements. Car dealers are advertising free tax prep to snag refunds for down payments! And, like it or not, most clients see tax preparation as a commodity. They bitch about paying for it because tax preparation is something they need, not something they want.

That makes it hard for you to lucror vestri dignitas (charge what you're worth) in any economy — especially a crappy economy like the one we're stuck in now!

What's the solution? Well, if clients don't want to pay for commodities, and resent paying for things they don't want, isn't it obvious? Don't be a commodity. And give them something they actually want!

That's where tax planning comes in. Offering proactive tax planning sets you apart from the hordes of competitors offering tax preparation. And offering tax planning, with immediate and measurable benefits, gives them something they want — especially now when their own business may be down!

That's also why TaxCoach is surprisingly important now, even in the middle of "the season." Most of you won't do much actual tax planning between now and April 15. But here's the crucial point: you can use TaxCoach to tee up planning engagements for after the season.

Are you working on a return for a client who can use some planning? Are you worried they'll resent paying your fee for something they think they can get somewhere else for half the price? Spend five minutes to enter their information into the TaxCoach system and print out a Summary Report. Hand it to the client with their return and tell them you've got some ideas that you think will help save them money. Then schedule the appointment and make sure you communicate that you'll be doing something they want to do — that also just happens to set you apart from any commodity tax preparer.

Hundreds of TaxCoach members across the country are succeeding, even in today's economy, by offering unique planning services that clients want and are willing to pay for. In Michigan, Karen Ryan has just increased fees across the board by 25% for the second time in two years. Her clients are willing to pay, despite the lousy local economy, because Karen communicates why they should want to pay her. And Karen's story is far from unique.

Are you worried you'll be too busy to use TaxCoach during "the season"? Don't be . . . just preparing Summary Plans can be all you need to tee up thousands in new revenue after April 15. Are you worried TaxCoach is a luxury you can't afford right now? Nonsense. In today's economy, the ability to distinguish yourself from your competition is the best thing money can buy! That means TaxCoach isn't a luxury — it's an investment.

The name of this article is "How to Succeed in a Down Economy." But I should confess I fibbed a bit. (If Newt Gingrich were running against me, he'd say that was the most outrageous lie I've ever printed in the Briefs. But that's a different story.) The strategy I've just outlined will help you succeed in any economy. It just matters more now. So pay attention!

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TAXCOACH UNIVERSITY (EAL)
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Class is back in session! Here's the upcoming TaxCoach University schedule:

• TaxCoach 201: Lead Generation on Steroids (Feb 7)
• TaxCoach 903: Social Media (LinkedIn) (Feb 14)
• TaxCoach 902: Introduction to Coach4College (Feb 21)
• TaxCoach 904: Social Media (Facebook) (Feb 28)

Classes are informal, and a lot of fun. When it comes to teaching styles, I'm a lot less like John Houseman in The Paper Chase and more like Donald Sutherland in Animal House ("I think Milton sucks as much as you do.")

Class meets at 2:00pm Eastern. If you miss a class, replays are generally available within 48 hours. Replays for the first three classes are already posted. So there's no reason to miss a minute! Learn how to make the most of your TaxCoach membership, and really make a difference — in your practice and in your life.

Enrollment is easy. That's because you only have to sign up once to enroll in the entire series of classes. We'll keep you posted on topics here, and GoToWebinar.com will automatically remind you of times.

Enroll now at https://www2.gotomeeting.com/register/228591338! And we'll look forward to seeing you on February 7.

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MEMBER NEWS (EAL)
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• Rear View Mirror Postcard: A couple of weeks ago, we spent part of our Member Call-In discussing how to counter the seasonal barrage of advertising from tax-prep software and chain preparers. Somewhere along the line, somebody compared traditional tax preparation to driving a car by the rear view mirror. And a marketing idea was born . . .

  The new marketing postcard features a photo of a rear view mirror, with a bold headline reading "More Than Just a Look Back." (For you car geeks out there, you'll recognize the mirror itself as from a 2008 Saab 9-3 — one with roughly 50,000 miles that could stand a good detailing.) On the back, you'll find the following text:

  Tax prep software, and even most professional tax preparers, do a fine job putting the right numbers in the right boxes on the right forms. But then they call it a day. That�s like driving a car using just your rear view mirror!

  If you really want to pay less tax, you can�t settle for just recording last year�s history. You need someone who can help you write it — with a complete menu of proactive concepts and strategies that ordinary tax preparers overlook.

  Call xxx-xxx-xxxx for your free tax analysis. We�ll find the mistakes and missed opportunities that can cost you thousands, and show you how proactive planning can rescue those lost dollars!

  The goal, of course, is to distinguish yourself from tax preparers — including software — that simply don't give clients the sort of proactive planning ROI that you do. You'll find the new postcard in the Playbook, as #40 under "Sample Marketing Copy."

• Client Survey: Our new Marketing Director Lisa Wells has just completed her first new tool for your use — a client survey you can use to evaluate your business. The survey is designed with three purposes in mind: 1) to find areas of improvement; 2) to identify clients ripe for tax planning and other services; and 3) to get testimonials for your marketing campaign.

  If you choose to send the survey via email, the client can check boxes and type in their responses. You may also decide to give them a paper copy right after your meeting, when everything is fresh in their minds. Either way, a short letter and/or a small token is a good way to express your appreciation.

  You'll find the template survey in the Playbook, as #41 under "Sample Marketing Copy." Press Club members are eligible for turnkey service, including customizing the survey, executing it on their behalf, and an analysis of the results with Lisa.

• Member Call-In: Our Wednesday Member Call-Ins are a welcome break from the seasonal grind. If you're missing the calls, you're missing a chance to step back from the day-to-day rush and get some perspective on your business.

  Our next Member Call-In is Wednesday, February 8, at 1pm Eastern. If you're a TaxCoach subscriber, Catherine already has you signed up. Just mark your calendar for Wednesdays and keep an eye out for the reminder email from GoToWebinar.com!

• Attention Certified Tax Coaches: Dominique's next Case Study Call will be on Monday, February 6, at 4pm Eastern.

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We can answer questions on using TaxCoach system features anytime. Save marketing questions for Member Call-Ins! For best response, email support@taxcoachsoftware.com.

Regards,

Certified Tax Coach
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