Slashing fees to clients in tough times won't help your business, study says
PriceMetrix survey covering advsiors with $900 billion AUM shows clients are mostly attuned to trustworthiness, not basis points
PriceMetrix
Data and ratings for RIAs
Top Executive: Doug Trott
Jeff McClure
Very interesting story and one that resonates with our experience.
Another interesting point is that the average adviser tracked here saw a 12% average annual growth in revenues. Since the premise of the story is that fees remained constant then that equates to a 12% average growth in AUM. Notably that is the same growth rate that was apparently produced by putting on $11,000 steak dinners in the article on growing AUM.
Obviously all the details are not in place here, but that 12% growth in AUM is certainly an interesting coincidence.
Elmer Rich III
We have learned that contrary strategies usually work best. We are raising our fees and helping our clients to do the same. Truly expert help is getting harder and harder to creat, maintain and find. It works very well. Results include:
- You clearly signal your value and uniqueness. Do you want to be offering services clients can get cheaper somewhere else?
- You don’t let your business get “bullied” by your client’s fears — or your own.
- Undesirable clients leave, or don’t hire you — always a blessing. “Rejection is protection.” We have all learned this the hard way.
Being successful is all about setting good boundaries for your business and professional life. When prospects tell us we’re too expensive for them, we say “you’re right.” — and they are.
Plus, none of us can, nor want, to work with everyone who comes along — except the desperate. If you’re desperate, you help managing your desperate emotions — not to sell your self and your business cheap.
Maria Marsala
“if you hold the line and don’t lower your prices when the market goes down you can still keep your clients.” — Doug Trott
Doug, you couldn’t have said a truer thing. Doesn’t matter what the industry, your comment is SOOO true.
Maria Marsala
“if you hold the line and don’t lower your prices when the market goes down you can still keep your clients.” — Doug Trott
Doug, you couldn’t have said a truer thing. Doesn’t matter what the industry, your comment is SOOO true.
