If you’re providing great service and meeting clients’ important needs, don’t hesitate to charge a premium price for your services. To make sure this is the right move for you:
- Review what you provide. You must deliver real value if you’re going to charge premium fees.
- Get courageous. If you know you provide phenomenal service and clients are regularly referring you, go ahead and raise your prices.
- Don’t apologize for for your fees. If you’re running a premium operation, you should be able to charge a premium price. Confidently move forward, looking for your certain number of clients prepared to pay that certain dollar amount.
Related: Advisors: Don't Hound Prospects
If you know you’re providing phenomenal service and know you’re fulfilling an important need, raise your prices.
People will pay a premium price for quality and value.
When I was managing Speedo New Zealand, we designed a woman’s swimsuit all in white Lycra, specifically for the fashion market. . .
As I mentioned, it was a fashion item. Understandably, certain clients who we were working with didn’t get the point. When people that were buying swimwear for sports stores saw this particular swimsuit, they couldn’t understand why someone would buy it. Then when we told them the price point, they laughed and said no one would buy it. And that was fine. The garment wasn’t for them.
The garment was one that we showed to women’s boutiques, fashion boutiques who knew when a lady sees a white swimsuit that isn’t going to go see-through, that she feels comfortable and confident in, that thing is going to sell. And we marked up the price exorbitantly so our profit margin on the suit was incredibly high because the issue wasn’t one of price. The issue was one of delivering a quality swimsuit that wasn’t going to go see-through and have ladies be able to enjoy that.
It’s the same for you as advisors, especially when it comes to charging for financial plans. When you’re delivering a fantastic service and you’re having your clients recommend their friends and family, it’s time to revisit your pricing. I know a number of advisors who believe they should use the financial plan as a loss leader and don’t charge for it. I’ve spoken with an advisor who wouldn’t believe that she could actually charge $1,500 for a plan. But she got confident and tried it. Fast forward to today, and she’s now thinking about charging $3500 because she can’t keep up with the number of plans she’s doing. In fact, she wanted to do 30 plans for the entire year, and she’s at 18 after Q1.
Don’t hesitate to put up your prices as long as you are delivering quality. Ron Carson did a great Linkedin post last week about Yeti and about Amazon Prime, and you can click on the link below to access that. It was about how people will pay for value, for perceived value. And as long as you deliver it, you can expect them to pay premium prices, which means better profits for you.
So, if you’re considering putting up your prices,
- Review your services. YYou’ve got to deliver value if you’re going to do this.
- Get courageous. When you know you are delivering phenomenal service, when people are telling you they’re really enjoying what you’re providing for them, put your prices up.
- Don’t apologize for that. You are running a premium operation, and you should be able to charge a premium price point for it. That just means you’re looking now for that certain number of clients prepared to pay that certain dollar amount.
You can rest easy and go forward with your business knowing you’re doing everything right, working with the right people who truly appreciate you and will pay for your services.
I look forward to bringing you another Distraction-Proof Advisor Idea next week.