Adviser fees are a cost for sure, and often a stumbling block for many professionals with their clients is this “cost discussion”. It is a stumbling block because more often than not the entire conversation revolves around just one of the cost components rather than the actual fee rate and the value to be obtained from paying it.
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.
