Here’s the Pricing Mistake Almost Every Financial Planner Makes (and How To Fix It)

Imagine that your prospects didn’t hesitate, not even for one second, to pay your price. That it would be – in fact – a no-brainer.

Don’t believe that’s possible? Then stop here.

However, if you don’t want to leave money on the table and if you don’t want to miss my free gift at the end of this article, you might want to keep reading.

How do I know that most planners make this mistake?

Because they don’t know the psychology that goes with the setting of profitable prices for their services.

And no, the mistake is not that you charge too little (though that is a common mistake as well).

And no, the mistake is also not that most planners sit back and think to themselves: “Hmmm, what price should I pick?” And then they pull a number out of a hat and that’s it.

The mistake is to have only one price for your service.

Why? Because if you have only one price, you are not making it easy for your potential clients to decide to do business with you. You see, most of the time your prospects generally can’t understand or accurately explain why they want to hire a financial planner. The truth is, when you help them to decide to do business with you, it saves them time, money, and energy.

That’s why you want to set a smart price that will turn your offer into a no-brainer. Luckily, financial planners are by definition smart people. And, simply put, I believe smart planners want to set smart prices.

And before you wonder if I’m going to discuss a commission-based model, a fee-only based model or any other type of revenue model in our industry, I’d like to be straightforward with you on this one: I’m not. Because I believe “models” aren’t that important. In fact, what I do believe is that if financial planners serve their clients in an ethical, honest and sincere way, it doesn’t matter which type of revenue model you choose.

And if you think your customers do care about your “model”, well, you’d better read this.

What You Can Learn from Bread Machines When It Comes to Pricing

Years ago I read Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions by Dan Ariely. For the planners who haven’t read this bestseller; it’s about human irrationality and how we can predict this irrationality when it comes to decision-making.

And for those who don’t know; people are far less rational than standard economic theory assumes. Because sixty years of reseach has shown that 95% of our decisions are irrational.

That’s quite unbelievable when you read those statistics for the first time. Because most of the time we – as logical, analytical and rational financial planners – tend to believe our decisions are, indeed, rational.

But…………..they’re not. Just read this short irrational story about bread machines and I’ll show you.

You might have heard this classic story about how Williams Sonoma introduced a bread machine into the market and why they thought it would sell extremely well.

However, long story short, it didn’t. It didn’t sell well at all.

That’s why they decided to introduce a new bread machine. A bread machine that cost 50% more than the original bread machine. The first bread machine cost $275 and the new and second machine cost $429.

Guess what happened?

Sales of the first bread machine (the cheapest one) almost doubled. What happened was that people saw this as a “trade off effect”. They didn’t want to buy the most expensive option, so they decided to buy the cheaper option.


Because the most expensive option is seen as a price-anchor, making the first bread machine appear cheaper and look like “a deal”. People rationalize purchasing the less expensive option by avoiding the most expensive option.

There is only one problem with this strategy: it kills your revenues. What’s worse is that people tend to haggle the cheapest version down further.

How to Fix Pricing Mistakes

As Dan Ariely points out in Predictably Irrational, it’s all about relativity. People not only tend to compare things with one another but also tend to focus on comparing things that are easily comparable – and avoid comparing things that cannot be compared easily.

What do I mean?

Take a look at this ad from The Economist:

The first option – the Internet subscription – for $59 seems reasonable.

The second option – the $125 print subscription – seems a bit expensive, but still reasonable.

But then, the third option: a print and Internet subscription for $125.


Is that a typo?

If it’s true, who on earth would buy the print option alone when both the Internet and print subscription are offered for the same price?

What’s really happening is that the (very smart) Economist-marketers probably WANT people to skip the cheapest option.

As Ariely points out:

The marketing wizards know something important about human behavior: humans rarely choose things in absolute terms. People don’t have an internal value meter that tells us how much things are worth. Rather, we focus on the relative advantage of one thing over another, and estimate value accordingly.

And in this case, you may not have known whether the Internet-only subscription at $59 was a better deal than the print-only option at $125. But you certainly knew that the print-and-internet option for $125 was better than the print-only option at $125.

In fact, you could reasonably deduce that in the combination package, the Internet subscription is free!

How You Can Use This In Your Financial Planning Service

If you are like me, you now might have an idea how you could use this in your own financial planning service.

You might think, hey, I’m going to copy this. And this is how it might look:

Offer #1

Financial Planning: $2,497 plus monthly fee $97

Offer #2

Wealth Management: 1% of AUM

Offer #3

Wealth Management & Financial Planning: 1% of AUM

The first offer seems ok. The second option seems a bit expensive, but still reasonable. But then your prospect reads the third option before his eyes run back to the previous options.

“Who wants to buy stand alone financial planning, your prospect wonders, when wealth management PLUS financial planning is offered for the same price?”

The third option is in fact, a no-brainer.

What’s going on here? Most of your prospects don’t know what they want unless they see it in context. They don’t know what kind of racing bike they want – until they see a champ in the Tour de France ratcheting the gears on a particular model. They don’t know what kind of speaker system they like – until they hear a set of speakers that sounds better than the previous one.

Your prospect doesn’t know what price they want to pay – until they see the other options where they “only” have to pay 1% for wealth management PLUS financial planning. Because then it clearly looks superior.

And I hear you think: that’s great Ronald, but …

What if I’m an Hourly Planner or a Planner with a Monthly Retainer Model?

Then picture yourself grabbing a cab. Picture yourself looking at that taxi meter. Don’t you hate watching the taxi meter going up, knowing that every extra inch of the way is costing you?

Why do people hate this?

It’s because of the pain people are suffering. Not physical pain of course, but rather activation of the same brain areas associated with physical pain. The same goes for some of our revenue models.

You see, your clients are not weighing their current gratification vs. future gratifications. They experience an immediate pang of pain when they think of how much they have to pay.

So, suppose you are an hourly-rate financial planner, then try to honestly answer this question:  Do you believe serving your client by the hour minimizes pain? Or is it like the taxi meter?

It’s obvious, right?

But hey, not to worry. Because you might want to consider why AOL switched from pay-per-hour Internet service to pay-per-month. And that – because of doing this – they got a flood of new subscribers.

And it’s not strange. You see, science tells us that people love to prepay for things or pay a flat rate for things.


Because it mutes the pang of pain.

Marketers have realized this for years, and they have responded with offers designed to minimize pain associated with buying their products. Netflix crushed its video rental competitors in part by its “all-you-can-watch” price strategy. Cruises have surged in popularity in part because they deliver a vacation experience for a fixed price.

In each case the marketer offers a single, relatively attractive price that removes additional pain from the buying experience.

In our industry, the single price (flat fee or all in fee) is actually higher than the amount your client spends on your advice. Nevertheless, the all-inclusive fee is likely to appeal to many of your clients.


Because it mutes the pang of pain.

So, why don’t you try to avoid multiple individual pain points in your financial planning service?

There are several options. You might want to experiment with a single-price approach for your services such as an annual fee or all in fee instead of the hourly-rate. That simpler pricing approach may boost not only sales. As some people will pay a premium for pain avoidance, profit margins may boost as well.

However, if you don’t want to do the hard work yourself, but instead, want to use a proven price-strategy that – regardless of your revenue model – works to sell the type of financial planning service you want to sell, the only thing you have to do is to answer the following question:

What is your biggest problem when it comes to the price of your financial planning service?

Please, answer this question by leaving your comment – here below – and you’ll receive a free PDF with The Simple Price Tweak That Will Get You More Clients Right Now.

Thank you for your comment.

Let’s make financial planning matter,

Ronald Sier


Leave a Reply 140 comments

Ethan Reply

Finding the right amount to charge and knowing how much value I need to provide for it.

Nita Menezes Reply

Hi Ronald, I liked the concept of Hourly pricing and also the concept of the 3 levels that you have shared.
Value addition is very important and if we deliver more value than what we commit. Looking at setting pricing for the services offered…considering the regulations etc,,,

Pat Reply

Why they want financial planning when they need a “money manager only”

Chris Reply

People like getting something for free even if it does not have value, so throwing in freebies throughout the relationship helps.

Monisha Murthy Reply

explaining the value of the service they pay me for.

Jordan Miner Reply

My wife and I have been looking for a good financial planning service, and I think that some information could be good. I’m glad you mentioned that you want to look for a financial planning service who offers wealth management as well like your third option. I’m going to have to look for a few financial planning services and see what we can find!

Kye Reply

Pricing value but also fairly compensating ourselves for time, overheads and expertise

anish Reply

Finding a reasonable way to explain the value of the service without having the feeling of justifying taking money anyway.

Stefan Reply

Finding a reasonable way to explain the value of the service without having the feeling of justifying taking money anyway.

jon rose Reply

thanks Ron

Ran Reply

Right now I’m with a firm that charges an embedded fee in the MER, but I’m looking to go fee for service. Would like to know how to go about pricing.

James Reply

Very interesting read!

nigel Reply

Clients simply choose not to see the value of advice

Akhila Reply

Being able to correlate and convince about the value provided to the cost

Mark Fenton Reply

My biggest fee problem comes from people who are doing it themselves now.

Dave Reply

To give people examples of feelings in which they can recognize themselves. Solve a pressing question in advance. Let people experience your interest. Feeling has no price. In an experience, the pain of price will soon drop and be seen as an investment rather than a cost.

Robert Reply

How we charge is a reflection of the business model. We we start we have sign posts to help us zero in on a price. 1) What is profitability / how much we would like to earn, 2) How others are pricing, 3) What the clients are willing to buy. – this is the starting point.

The challenge is whether we as advisors deliver the value worthy of the pricing. In the era of commodity pricing for financial products, it becomes a question of understanding value for your target market. This is not easy… nor quick to evaluate… and to be successful we need to be quick.

John Hebblethwaite Reply

Really good article and examples ??

rich dworzak Reply

Biggest problem is explaining the cost to people who need my services the most. Some feel they can successfully grow their wealth and they should not really have to pay for it, like in a bank. I do explain all the value they get first, strive to determine if they can write off any of the expenses on their taxes, and then explain the costs via what the costs would normally be for each component of what I do. Then present my cost for the overall comprehensive package.

Mark Reply

I agree agree with most of the other comments. Charging by the hour is not the way to go as you will find yourself spending half your time justifying to some of your clients why “you spent so much time” on something that they thought would take you five minutes.
My problem is articulating to the client the value that my flat fee actually provides them.

Terry Nestor Reply

Interesting article. thank you. Pricing is a very complex area and one where professional advisers struggle with the tension of knowing and wanting to help clients achieve their goals and the need to make it profitable but affordable. Our concern for our clients comes first and therefore this can lead to undercharging so that particular clients can benefit from the value we can add to their lives.
We need to educate people to the real value of advice, which is in the achievement of OUTCOMES in their lives. However, outcomes are not usually achieved in short term strategies, although some are, and we need to work with people for years in most cases, in order to achieve the outcomes. By showing people a Strategy or Plan for how to achieve objectives, we can demonstrate the VALUE to some extent beforehand and thus show that its possible for them, but we need to ask for a commitment and need to give a commitment as well to make things happen. By providing a Review at least annually, we demonstrate that we are moving towards the goals and making progress, thus cementing the TRUST. This trust is often generated at the first meeting where we help people identify the most important things to them and formulate a working arrangement to achieve these things.
For pricing to be profitable we must take the risk, not the client, and charge only for what we deliver, not just a promise. Pricing for each client is related to the goals involved, the management of the means to achieve those goals (often investments, insurances, debt, etc) and these components should carry a fee also. But the most important fee is the fee required for thinking and preparing strategies as well as action plans each year. The client must be “profitable” for us to be profitable.

lou Reply

Showing value to clients is always something that entices new business and lasting business.

niles Reply

As I am reading the article I agree with your point and I keep asking myself what is the answer to is problem. Then I see your question at the end. For me I have a strong passion for people to have a plan other wise we are just flying blind. My issue is that I have failed to create the emotional connection to have a plan and the resulting change it will have in their life. people want instant gratification and this does not provide it. So I am anxious to see your solution.

Fabien Reply

To find the proper perceived advantage form the client persective and put a price on it

Martin Reply

no probllem

Marin Reply

thanks for your inspiring article.
biggest problem: Does one stick with a percentage of AUM or move to a fixed fee! and what about an upfront fee?

Chris Reply

Got me to pick up good old Dan Ariely again.

Richard Dunn Reply

Price and value are slippery concepts. They both are dependent on the perspective of the viewer. I think it\’s really important to see things through the client\’s eyes so we can give them the most satisfying experience we can.

Adam Reply

Ensuring that people are deriving value in the long term service that is being offered in the first meeting (where fees need to be agreed before taking a second meeting).

My view is that this should be agreed at the end of a second meeting when a plan is being illustrated. The client then sees the service they getting and understands the value of it.

I think the problem.with having flat Pounds and Pence pricing is that some will derive value from a much higher number than others so you would be missing out by pricing at a lower rate.

Thomas Reply

Great as always!
biggest problem: find the right hourly fee per customer/for all customers!


Peter Reply

Maintaining an ongoing relationship with hourly financial planning clients if they don\’t transition to % AUM

Erik Averill Reply

Our biggest issue is the tension between what we charge & the level of service we provide. We focus specially on helping professional athletes which demands an intense amount of financial planning hours on top of the asset management.

Wilf Pell Reply

When you have an established client base the client\’s \”ability to pay\” should also be considered as a factor, particularly if you feel the situation is only temporary.

Isaac Reply

Compared to what?

Lance Reply

Does one stick with a percentage of AUM or move to a fixed fee!

Francis Klonowski Reply

The biggest problem is moving away from hourly fees to set a fixed fee / project fee which is still realistic and won\’t seem like undercharging. Hourly fees are all very well but take a lot of admin time [recording & noting], and then how do you charge for simple things like memos to providers or for client meetings. I wouldn\’t like the client to think our conversations about English cricket are being charged! So a fee that includes reviews / service behind the scenes etc is my aim for the year 2015.

sheldon Reply

I\’m also from south africa, commission driven, although the government wants to do away with upfront commission\’s? ?

sheldon Reply

My biggest issue with price, is trying to let the client see the value in the planning I\’ve done for him. Sometimes they just can\’t seem to grasp it! Drives me insane

david Reply

Knowing what to charge so that clients say yes whilst still making a profit and how to word it to cause less \’pain\’.

Robert Reply

Agreed with Mike….

Chris Reply

Biggest problem: Being able to articulate the value so that it correlates with the price!

Mike Reply

Tough to get some to see that the value is in the planning, not some investing strategy that will make them fortunes!

Allison Reply

Articulating the value

cindy kleiner Reply

My biggest problem is when charging by the hour my clients pay for just enough advice or time to let the steam off the issue and then want to wait to call me again until the next crisis.

Tara Reply

Having them understand the value they will be receiving and be willing to pay for it.

Dick Kaljee Reply

If it is in balance between the value of the service and the price clients are willing to pay for it. Prospective clients don\’t know what they can expect.

Tom Reply

Multiple problems:
1. Not charging enough
2. Apparently, not having a more expensive \’anchor\’ for them to reject 🙂
3. Feeling like I\’m asking them to do a favor for me by doing business with me–I\’m the one doing the favor!
4. Asking for the business using a tone of voice that suggests that I\’m not sure if they\’ll do business with me, or worse, that I\’ll be pleasantly surprised if they do business with me
5. While most renew each year (if even at a reduced \’retainer\’ fee), I need to articulate the ongoing plan maintenance value in more vivid ways (which others have expressed as well–how to articulate that value, initial and ongoing)

These aren\’t all-the-time, every-time problems, but that self-doubt can manifest itself in numerous ways. Truth is, most of the time prospective clients don\’t even blink at my fee, which means I\’m right about #1, and there\’s no rational justification for the self-doubt/fear that comes through in numbers 3 and 4.

    Ronald Sier Reply

    Thank you very much Tom!

      Tom Reply

      Bonus problem: living in a Dutch community full of Dutchmen who expect a deal (I\’m one of them). 🙂
      Merry Christmas, Ron! I better not see a reply today. 🙂

        Ronald Sier Reply

        Sorry Tom 😉
        Merry Christmas!!

Mark Reply

Knowing the value of my offer to the client.

Kevin Chalk Reply

Getting the right balance between the value a client perceives and your fee

Gary Reply

I wrestle with finding the right balance of value provided for the fee I\’m charging. Things that seem simple to me (and therefore, not very costly) may in fact be very valuable to the client (and be willing to pay for).

Chris Reply

Pricing project vs relationship work

Tanya Reply

Thank you for the sage advice.

Stan Reply

Biggest pricing issue is communicating what we do behind the scenes for a single client, or for a group of clients, or for the entire book of clients, that results in better service or outcomes for the client, yet they have no idea about the input factors. Many of the input factors are unique attributes we possess compared to our peers.

William Reply

My biggest problem is justifying — or maybe its my own internal issue — the amount I\’m paid for advice when a client\’s assets are very high. 1% on $2.oM is $20,000. The % model seems over inflated.

Gregg Reply

I think recognizing how the industry is changing and how this relates to, or affects my pricing structure.

Gavin Reply

Thanks for the article Ronald, we struggle with charging the planning fee and revert to #offer 3 with the right clients. Maybe we\’re beating ourselves up for nothing.

Michel Reply

I agree with Joe (17-12-2014). People are not (yet) aware that financial advice never was for free because our price was included in the price of the product.

Sukhvinder Sidhu Reply

As always, Ronald, your article set the thoughts rolling. Thanks!
Although my fee model evolved in accordance with the chosen service model, to serve the common people and to accommodate any sincere fp service seeker irrespective of his income level, still I read on to find if there can be some improvement. The greatest challenge still is to make the people see the value they will get in relation to the fee set, due to the larger absence of fin awareness in this region.

Lisa Reply

Having client see the value in financial planning even though I feel I explain it well. I think it is because the banks don\’t charge a fee to give there advice..which we all know is not really advice. They seem to think financial planning should be free!

Charles Roberts Reply

Thank you for your thoughts…it\’s pricing and messaging are two challenges I\’ve been dealing with. I\’ve tended to quote project fees, and after tallying the time in the project find that I underpriced the services, occasionally significantly.

robert wander Reply

biggest pricing challenge is repricing existing clients if I feel I\’ve undercharged them

Theo Reply

Great article again Ronald! My compliments. I usualy work with a fixed price to avoid the pain foor my clients, but I usualy also find out that I\’m way to optimistic in my estimations of the fixed price. It takes much more time. So actually I\’m taking the pain for my clients you could say. But we\’re still learning.

Roger B Reply

It\’s virtually impossible for all but \’engineer\’ clients to gauge the value of the Financial Plan at the outset of the relationship. It\’s the service and results we deliver in 3, 5 , 10 years that demonstrate our value. That\’s why we struggle to charge much up front and rely more on ongoing AUM based fees.

rg sherrill Reply

A fear that leading with an explicit fee will not afford me an opportunity to express a value proposition to those that are considering \”free\” planning alternatives.

    Ronald Sier Reply

    What\’s your target audience Sherrill?

yves Reply

How to incorporate a value component (the answer to the client\’s question might be simple, but that is because we have spent years working in this area, studying, etc.)

    Ronald Sier Reply

    Yves, the answer might look simple to you. But is it also simple to your client? It might be really valuable.

mark coomber Reply

\’Selling\’ the concept and the potential up-side value to the client without giving too much away, yet giving them enough of a \’taster\’ that they buy-in to the service.

    Ronald Sier Reply

    Mark, have you tried telling a story combined with giving value?

mark Reply


The pricing issues occur for me when I take clients that are out of my niche. I am building my business and at this stage I take clients that are not ideal and am left with pricing issues. When clients fit into my niche area the pricing is much less of a problem.

Ian Reply

Being able to clearly articulate the benefits particularly to new clients – how to convert the intangible to outcomes they can clearly see

Mike Davis Reply

No question, the biggest issue is being able to convey the value the Client receives for engaging the services; just as the use of in depth charts/models/outputs is pointless to the Client, so too can be a menu of services that are known to be vital, yet only known by the professional that deliver those services, not the Client

Ernie Reply

Very thoughtful article Ron!

Marc Reply

The biggest challenge by far is the annual % AUM fee for HNWI clients with big portfolios. They know their own negotiation position and are not afraid to put me to the test because they tend to shop around a lot.

    Jill Turner Reply

    How are advisers meeting the challenge of HNW where the % model doesn\’t quite work. Capped fees ? Teired rates if so what are the teirs ? Jill

Heidi Reply

Thanks for another great article.
Communicating the value to them of the proposition you are proposing and for them to be able to visualise how this will benefit them now and in the future. Also setting a pricing structure where both us and the client are happy, the client that they have paid for what they required and us that we have been paid for a job well done.

Andreas Reply

Thanks for this great article!

The biggest problem in the pricing of financial planning is picturing the benefits to the customers that don\’t know what to expect.

Joe Reply

Convincing those who think that advice has always been free to pay for the service!

Jeremy Reply

Ensuring that we provide value to all clients regardless of AUM

Rolf Reply

I like this idea. I find it difficult to find the balance between underpricing and overpricing.

    Ronald Sier Reply

    What do you mean Rolf?

Wil Huizinga Reply

Thanks Ronald!

Wil Huizinga Reply

A good story with a \’ picture \’ that suit the distinguishing proposition that you offer.

Perry Reply

Thanks for your article. I recognize the example of the taxi meter. And because I\’m an hourly-rate planner I recognize this pain with mine clients. Something to do about it in 2015!

    Ronald Sier Reply

    I just love new year\’s resolutions…:-)

Joseph van Tonder Reply

Thanks for the article. Regulators in South Africa are looking at scrapping commissions and we have to start looking at changing our remunaration models.

K Reply

Pricing with a consistent process.

Stuart Reply

Undercharging for the time and effort to get the initial advice together. Here in Australia we are in a period of substantial flux as the industry moves towards a profession. I do same amount of work (time, complexity, paperwork etc.) for a $200k pension as I do for a $600k pension, so I feel the costing needs to be the same, but have an internal block on charging the 600k price for the 200k plan. (Hope that makes sense).

    Ronald Sier Reply

    Is the value your deliver for the client the same Stuart?

Vito Reply

demonstrating the value to clients that have been paying an ongoing fee for several years

Bhuvana Reply

Loved the giving relative pricing idea and also agree that hourly pricing models can be counter productive. This way we are creating our own competition. Clients want to be able to choose. Now they don\’t have to go out to competition to satisfy their need to shop around or negotiate and feel good about the choice they are making. Like it. And am quite excited that you are visiting India for the conference in Jan \’15. Look forward to meeting you.

    Ronald Sier Reply

    Hi Bhuvana, thanks for your comment. Regarding to the Network FP National-event: you\’ll only be seeing me on video…:-(

Chandan Singh Padiyar Reply

To keep the Price fixed for all Clients or keep the Price Customised as per the needs of the Clients ?

Alfred Reply

Great article as usual Ronald!
Food for thought and very topical at present in SA as we are presently going through RDR. Retail Distribution Review where regulators have advice fees and distribution models under a microscope.
Would love to hear from any advisors in the UK or Australia that have been through this already.

Rob Reply

Changing pricing with current clients that have under paid for years.

Ryan Sheppard Reply

EXPLAINING what Financial Planning actually is –– being such an intangible and ambiguous service, I find it difficult to consistently explain financial planning to prospective clients.

Digby Reply

Thanks for the great article. Its always a challenge to price work when the scope changes mid engagement

Sarah Reply

value vs price

james Reply

Consistently maintaining the right profit margin in all pricing, and effectively communicating price increases.

Brendon Reply

Great article – I think making advice tangible is a big challenge that is very closely liked with pricing. If we can do a better job of making the outcomes of our advice tangible, then we will do a better job pricing.

Jerel Reply

The biggest challenge is pricing the planning piece when there is no immediate asset management. The consumer is used to hearing 1% for asset management. So it\’s easier to use the tiered (combo) pricing to influence the decision that actually is in the client\’s best interest. It\’s the 3500 for planning alone that creates the resistance. Most people simply can\’t get the value to justify the expense. So I have been doing as you suggest- create an anchor and then propose a lesser fee, say 1500, and modify the planning engagement conversation so the client doesn\’t think you simply cut the fee by 2k. After all, the goal is to establish a relationship that may lead to asset management, referrals etc.

David Reply

Getting the team confident and consistent in describing the value we create for clients and the fair fee we charge for that value.

David Reply

Communicating the value is the toughest part of the conversation for many advisors.

    Ronald Sier Reply

    Spot on David. Facts and figures won\’t do. Can you guess what does…;-0

Mark Reply

Continuing to demonstrate the value of ongoing advice (and fees) after the initial \”honeymoon\” – ie. the initial engagement and advice. I guess it\’s about not taking the ongoing relationship for granted and remembering to continually re-visit and reinforce with the client the value you continue to provide that was initially presented and valued by the client – the reason they initially did business with you.

    Ronald Sier Reply

    I wish I had said that. Awesome Mark!

Mike Reply

Deciding how to convey any new pricing to existing clients.

darren Reply

Great article (as usual) Ronald
We have the habit of undercharging for the advice and aim to \”make back\” profit on the implementation stage of advice.
Would like the confidence to charge profit at EVERY stage of advice.

    Ronald Sier Reply

    Thanks for the compliment Darren.

Mark Reply

Finding that something for the client that provides them a WOW moment as soon as they walk into your office. Prove to them first up you are not like every other planner and they will not argue your price. In fact we have found in some cases they will arrange a payment plan for our upfront fees rather than not engage with us.

Erik Reply

My boss does not like to think about pricingstrategies.

    Ronald Sier Reply

    Maybe you should send him the link to this article Erik…:-)

Peter Reply

Getting people to understand what planning does for them

Noah Reply

Deciding on how to price the plan itself… base on complexity? Estimated hours spent or making complementary based on the invest-able assets being transferred?

    Ronald Sier Reply

    Thanks Noah. I believe most of the time it\’s hard to define complexity. What\’s \”complex\” for your client, is often simple for you.

Andrew Reply

explaining the value client will receive

    Ronald Sier Reply

    True Andrew. That\’s why I believe we need to fulfill our right-brain potential. Financial planning is for most people an \”invisible\” service.

Al Reply

Great article – have been advocating choice of services and fees for a long time – other important element – it changes the questions in the clients head from \”will I do business with this planner\” to \” what option suits me best\”
Biggest problem is justifying % amounts when the investable assets are very high

    Ronald Sier Reply

    Love your comment Alan

Marti Reply

Under-charging for the amount of time involved in manual planning work. Lack of confidence in pricing appropriately for fear the client will go elsewhere.

Brian Reply

Just what you hit the nail on the head with, Ron. Providing a point of comparison of relative value. This article is super helpful, thank you.

Alan Woods Reply

Would like to move to flat annual retainer rather than per cent – what sane business links their revenue to something over which they have no control ( investment markets)

Kathy Reply

The biggest challenge is helping prospects appreciate the value they WILL derive from the service at the point they need to sign up, so we deliver some value first then ask for commitment, so they don\’t suffer what you call the pang of pain hopefully – but this can be a bit of a prospecting game! Think we\’re quite good at gauging who the right prospects are to proceed in this way but can be a costly mistake if not!

    Ronald Sier Reply

    Totally true Kathy. Give first, sell later.

Peter Reply

Being confident in the delivery of our service model and the cost involved to the prospect.

Peter Reply

Being confident enough to set a price and sticking to it.

Having the ability to articulate our Value Proposition and the benefits to the client.

Sharon Reply

WOW. Love the way you think.

    Ronald Sier Reply

    Thanks Sharon!

    Colditz Reply

    Wie erkläre ich den Nutzen für den Kunden.

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