Help Clients Understand Why They’re Paying You a Fee
Before you can convince your clients of your worth, you need to convince yourself of your own value. Always remember your fees reflect the five-star service you can offer. That’s what makes you stand out in an increasingly commoditized industry.
Here are some ways to help you communicate your value – both to yourself and to your clients.
Tell clients the Springfield story
To explain why the cheapest price is not always the best option, tell clients the Springfield story. It’s about a traveler who rushes into Grand Central Station asking for a ticket to Springfield. The ticket seller asks him “which Springfield do you want? There are more than 20 Springfields in the US.” The traveler replies ‘which one is the cheapest?’
This story nicely demonstrates that the cheapest ticket is only the right ticket if it’s the one that is your desired destination. Getting a cheap ticket to the wrong destination will end up costing you more in the long run.
Similarly, when it comes to seeking financial advice, there are no bargains to be had – just as you wouldn’t buy a discount parachute, or pay for cheap healthcare – your clients can’t afford to place their financial futures in the hands of the cheapest financial advisor out there.
Tell clients not to gamble away their future
Explain to clients that your fee is not simply about managing money by telling them “The small amount of money you will pay me in fees will not change my life. It will change your life.” Opting to select an advisor simply based on fees means gambling away their financial future. Similarly, if they decide to manage their own investments, they would be gambling their future lifestyle that they are better at it than you are.
What you do is priceless
You are human and you will make mistakes but if you take steps to fix things and are honest with clients, there’s no need to discount your value. You may make mistakes but one thing you will never be guilty of is giving them cheap advice. The biggest fee anyone will ever pay is bad advice.
When you tell your clients you’re going to help them fund their children’s’ education, or secure a comfortable retirement, you are giving real advice – from the heart – and that is priceless. No retirement has ever been postponed because of fees.
Remember you are the full package
People go to a five-star restaurant because they want to enjoy gourmet food. They also go because they can expect five-star service. They know they will experience VIP treatment and that comes at a cost.
When you check into a Four Seasons hotel you know you will receive the type of dedicated personalized service that’s become synonymous with the brand. When a client walks into the office of an elite advisor, there will be a similar ‘Four Seasons’ buzz in the air.
People do business with elite advisors because they want superb service, not just good service. They want the best advisor on the block – even if that advice comes with a substantial price tag.
Don’t ever think other advisors are worth more than you
Don’t be afraid of losing business to Advisors with lower fees. If you believe that what you have to offer can be gotten elsewhere, you need to improve your self-image. Illustrate your difference and value by focusing on the things that clients find important. Ask an elite Advisor what they consider the most important factor in their success and they will tell you it’s listening. So listen and get to grips with your clients’ financial problems; then show them that you can solve them.
Listen, understand and communicate. Figure out why they need better service and find out what they are missing. Identify the one bit of service you can provide that other advisors can’t.
Use your charisma and personality. Offer clients an exceptional level of service and they will decide that dealing with you will be worth the price. Offer something extra and your clients will understand that you represent excellent value for money. Remember, you are not managing money. You are managing expectations.