What every client deserves to hear.


Read The Transcript Of The Episode:

Giles Kavanagh: There's an incredibly important sentence that every financial advisor, wealth advisor, wealth professional, deserves to be able to say with complete confidence when they are speaking to a client or a prospect. And for that matter, that same sentence is one that every client deserves to hear from their wealth advisor or financial professional, financial planner. And that sentence is very simple. And I'm going to say it right now.

But what's interesting about it is that many people can say it, but they can't say it with justified confidence. We're going to talk about what creates justified confidence behind this one important pricing sentence.

Here's the sentence. We have looked very closely at our value, and we can say with complete confidence that there's integrity to our pricing. We've looked very closely at the value that we deliver, and we could say with complete confidence that there's integrity to our pricing.

Now, what are the components of pricing integrity? This is very important because without them, you can't say this sentence with the same conviction. There are three factors. Number one, the price has to be fair, mutually fair. It's got to be fair to the clients and it's got to be fair to you and your team. Only mutually profitable relationships in doing business.

Number two, it has to be consistent. And what do I mean by consistent? Does that mean uniform? No. It means that if you had a bunch of clients who had roughly the same amount of assets and the same amount of needs and service that you provide them with, that you'd be charging the same price, basically.

So if you had a group of four clients at a room and you walked into the room, you're overhearing them, and they start to talk about your fees. Would you be scared and you are running for the door to avoid it, or would you be perfectly happy if they all revealed the fees that they were paying?

So is your pricing consistent from one client to the other and in financial services, it's surprising how much unnecessary variability there is to that.

Number three is, is your pricing transparent? And so what do we mean by pricing transparency? What we mean is that if someone asks you a question, of clients as well, I'm interested in your services, but tell me what you would charge if I were to give you 2 or 3 million to manage.

You should with zero hesitation to response, be able to answer that question within 15 seconds, just very factually lay it out. This is the price that we charge, this is our pricing schedule.

And again, it's surprising how many wealth advisors deprive themselves of that simplicity. We're not talking about actually revealing your margins, we're talking about having no hesitation in terms of revealing your pricing.