One key decision as service providers in wealth management is how we set prices for advisory and discretionary services. Let’s delve into what influences these costs. 💷
Discretionary vs Advisory Service
Advisory Services: Seen as more budget-conscious, advisory fees cover personalised advice tailored to each client. This process involves deep research and continuous dialogue. Considering the effort, should we think again about its cost? 🧐
Discretionary Services: In this approach, clients allow us the freedom to make investment choices on their behalf. The higher fee for discretionary services reflects our responsibility and quick response to market shifts. Does the premium align with the value we provide? 🚀
Traditionally, discretionary services are more expensive due to expertise and swift decision-making. However, the advisory model also demands significant resources, suggesting a closer look at its pricing might be warranted. 🤔
Re-evaluating your Approach: It’s not just about the cost but also about whether pricing fairly represents the effort and value each service offers. As providers, we should ensure that fees reflect our dedication and the benefits we bring to our clients. 💡
Both services are core to our commitment to excellence. We must align our pricing with the true value provided, fostering a successful partnership with our clients. 🌟
Source: LinkedIn
