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Permalink Reply by Maureen Sharib on January 1, 2009 at 11:53am

We'll stand on our fees and when we do increase them I will (ever so-subtly-maybe-not) remind our customers that we did so during these challenging times. I'm prepared to do whatever it takes to get the job done and I think my customers understand that - that's my value proposition.

Gas? That's a wild card. I did not expect it to go down but I THINK the powers that be saw what severe damage high gas prices did to the world economy (sub-prime mortgages my ass) in a very short time and are cognizant that raising them again like that could strike a mortal blow.

There are things we can control - like our appetites to spend money we don't have. We as a nation must get over the entitlement mentality that many of us have sunk into. Every American doesn't "deserve" to live like a king or a queen. Get over it and put your work boots back on. We need to heave our shoulders to the plow once again. Can we do it anymore? That's the question.

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Permalink Reply by John G. Self on January 1, 2009 at 12:51pm

Maureen Sharib said:

We'll stand on our fees and when we do increase them I will (ever so-subtly-maybe-not) remind our customers that we did so during these challenging times. I'm prepared to do whatever it takes to get the job done and I think my customers understand that - that's my value proposition.

Gas? That's a wild card. I did not expect it to go down but I THINK the powers that be saw what severe damage high gas prices did to the world economy (sub-prime mortgages my ass) in a very short time and are cognizant that raising them again like that could strike a mortal blow.

There are things we can control - like our appetites to spend money we don't have. We as a nation must get over the entitlement mentality that many of us have sunk into. Every American doesn't "deserve" to live like a king or a queen. Get over it and put your work boots back on. We need to heave our shoulders to the plow once again. Can we do it anymore? That's the question.

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Permalink Reply by John G. Self on January 1, 2009 at 12:55pm

We are increasing fees for clients because the white-shoe firms are already up there. This year, with all the travel, I suddenly realized my lower fees were NOT winning any prizes. I am tired of delivering a better quality work product with more value for less money. I will stand pat with existing clients, though.
In our area, most firms are getting 30 to 33.3% of the total first-year cash compensation, including the bonus. We have never used the true up with a bonus. But we are now because that is the market.

But I am still having worries....always when I adjust fees upward.

We hold 2-3 percent of the world's proven oil reserves and consume 20%. This is a bad sign for continued lower prices. The speculators and a spikle in global demand drove up the price once. Right now lower gas prices are a godsend for the economy. But the bad news is that people with good credit scores who CAN buy are going back to the larger vehicles. We just never learn. Why I am not surprised. We now have crop subsidies for banks and automakers...China and India are growing like crazy and the number of people in China and India who are buying cars -- that will require more of the global supply to operate -- will certainly send the price above $3 again. I just hope that it does not spike before the economy recovers.

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