View more on these topics

Be upfront about cost, but not with figures

Get people to realise what a life-changing service they’re about to receive

Shutterstock / Thinglass

It is funny what you come across on holiday. Take this laminated sign I spotted in the window of an English village shop: ‘Steak and ale pies: £4.50 each. They are not cheap, but they are superb.’

I love how upfront that is. Rather than have someone criticise them for gentrifying a lump of pastry and meat in order to take advantage of tourists, they’ve ‘called it out’, as the millennials say.

But it’s very un-British to be so direct about price, isn’t it? Generally, we like to be toe-curlingly sheepish about charges. ‘What, little old me, asking to be paid? Oh well, if you insist.’

You need to front-load the messaging with your value, and in terms people can understand. Tell them the benefits

The dilemma about whether to mention charges on your website is age old but, if I had a pound for every time I got asked about whether to do this, I would have about £6. That’s not because I don’t have many clients; it’s because most advisers don’t want to talk about it either. Perhaps it’s embarrassment, or lack of confidence.

Why marketing for advisers is a whole different beast

But it needs to be addressed. Because, if you’ve purported to be open, honest and transparent everywhere else, it follows that you should be saying something about your fees somewhere, otherwise it’s a bit of an elephant in the room.

And you’re doing a great thing, so you should be proud to say you charge for it. The trouble is context. There isn’t any.

Hard to position

Unlike the pies. Everyone knows how much the average pie costs and that £4.50 may seem a bit steep.

So it’s worth drawing attention to and using it as a hook. A challenge, almost. Nailing your colours to the mast and declaring: ‘The search for the perfect pie is over. It may cost you, but it’ll be worth it.’

But it’s not the same for financial advice, is it?

It is hard to position it. Very few clients shop around, so they have no real idea about how much is reasonable.

If clients are buying based on price, they’re probably not right for you anyway

And it is not a throw-away item or a repeat purchase, and there is not necessarily going to be any proof in the pudding until the pie is well and truly eaten.

There is no immediate assault on the senses. It is an invisible, unsatisfying, long-term purchase, the benefits of which may not be felt for years to come. (Are we done with the pie analogy now?)

Get emotional

So, what do you do? You need to front-load the messaging with your value, and in terms people can understand. Not pounds and pence, not features; but benefits.

This means digging deep into the weeds to report the real value of the advice you provide.

‘Enough is enough’: Advisers revolt against poor provider service

It means getting emotional. Again, slightly un-British, but just think about the impact you have had on people’s lives and recount that.

Here are just a handful of quotes from clients I’ve interviewed recently:

  • “The day I spoke to my adviser was the day my life changed”
  • “My adviser took an interest in my circumstances in a way that no one had ever done before. I’d never met anyone like him before”
  • “I’ve been able to retire early, and the stress of work has completely gone”
  • “My adviser gave me back control and calm in my life. And he was very clear about what his fees would be and told me I didn’t have to pay anything until everything was finalised.”

I think the last quote here offers the key. Referenced in among the weeds it acknowledges that there are fees to be paid and that they’re justified. You’ve mentioned the elephant in the room, but without scaring the horses.

There is not necessarily going to be any proof in the pudding until the pie is well and truly eaten

By talking about value in a way that triggers emotions, you can get people to understand what a life-changing service they’re about to receive, before talking about cost.

And, if clients are buying based on price, they’re probably not right for you anyway.

Faith Liversedge is a marketing consultant. You can follow her on Twitter @FaithLiversedge


This article featured in the August 2021 edition of MM.

If you would like to subscribe to the new monthly edition, please click here.

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Christopher Pitt 17th August 2021 at 9:15 am

    Dreadful piece. Basically, it’s saying that you should only work with clients that aren’t price sensitive or don’t understand the value equation very well. Some might call that deception! There is no problem with advisers charging whatever amounts they wish and use whatever basis they choose BUT, it should be made clear and transparent to clients. If you want to be paid for everything you do then simply state your hourly rate. If you want to be paid for the value you add then simply define what that value is.

Leave a comment

Recommended