Cost is not just Price: Put Adviser fees into perspective
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Cost is not just Price: Put Adviser fees into perspective

August 28, 2013

by Tony Vidler  CFP logo   CLU logo  ChFC logo

Managing the cost of financial advice conversationA stumbling block for many professionals with their clients is the “cost discussion”, and it is a stumbling block because more often than not the entire conversation revolves around just one of the cost components.

 

All too often the cost of financial advice centres upon just the price…and there is a strong tendency for a price-focused discussion to commoditize the value that an adviser delivers to the client.

 

When you consider cost from the perspective of “what are the range of possible costs” then you rapidly realize that there are 4  potential costs for a client:

1. Price
2. Time
3. Effort
4. Risk

 

Each is a potential cost to the client, and should be explained as part of the cost discussion.  In this Quick Tips video I explain and role-play how to explain these 4 elements as part of the potential cost to a client – and why PRICE is usually the lowest cost component for them to worry about.

 

 

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Comments (9)

  • Great Quick Tip Tony! Thank you – we will definitely use this in our discussions with clients moving forward. Simone.

    Simone Du Chesne
  • Great summary Tony. I am going to add this content to my initial meeting agenda. Thanks yet again

    The SMSF Coach - Liam Shorte
  • This is a great tip / check list / discussion to have with a client to avoid commoditising the value that an adviser delivers to a client. Well done Tony.

    Pete Wincott | The Risk Store
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