As service providers in the world of wealth management, one key decision is how we set prices for advisory and discretionary services. Letโs delve into what influences these costs. ๐ท
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? ๐ง
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? ๐
Traditionally, discretionary services are more expensive, attributed to the expertise and swift decision-making involved. However, the advisory model also demands significant resources, suggesting a closer look at its pricing might be warranted. ๐ค
Re-evaluating your Approach: Itโs not just about the cost but if 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. ๐ก
Both services are core to our commitment to excellence. Itโs crucial we align our pricing with the true value provided, fostering a successful partnership with our clients. ๐
Source: LinkedIn
