How to have the price conversation with clients

Why is it that some planners get so worried when it comes to discussing the price of a financial plan?  Perhaps you have experienced it yourself, where you have shied away from talking about price with your clients?

Each week I get the opportunity to observe financial planners in meetings with their clients. Some are so confident in their pricing they don’t even blink when price rolls off their tongue. But for others, you can barely hear the words that come out of their mouth.

In fact, I’ve seen clients ask what the price is despite being told because the planner moved on so quickly after mentioning that it didn’t take, all because the planner was worried the client wouldn’t see the value it in. Sound familiar?

When I ask the planners who are confident why they aren’t worried about mentioning price, the answer is always the same. “Because what I do is valuable, it takes significant time for me to achieve the goals my clients have set. Why shouldn’t I be confident in telling clients what my costs are?”

When I ask the planners who aren’t confident why they are so worried, their answer is also often the same. “Because I’m worried the client will think it is too expensive”. I inevitably ask, do you think it’s too expensive? Some responses have been “yes”.

This limited thinking can hold you and your business back significantly.  The truth is you do provide your clients with significant value – and you do deserve to be compensated for it.

How you provide your clients with value

As a financial planner, you get your clients to see the big picture, set long-term and short-term financial goals, which is crucial to mapping out their financial future. When people have a financial plan, it is easier for them to make financial decisions and stay on track to meet their goals.

If you then set them up with insurance, you also help protect their financial future and ensure that if worse came to worse, financial assistance would be available.

Here are some tips to articulate your value

The first step in successfully communicating your value to clients is to believe you provide your clients with value. Once you have that down pat, the rest is a case of knowing and understanding the high-level benefits you provide.

Still not sure where to start? Here are some high-level benefits to the advice you provide as a financial planner. You help your clients to:

  • Have the future they always hoped they would
  • Face their fears and feeling better about their finances
  • Better prepare for their future
  • Have more control over their finances and their future
  • Get clear on their goals
  • Have less stress and worry
  • Have peace of mind knowing professionals are looking after them and their finances

If you do struggle to articulate your value, then print this list out, learn it and use the relevant points when having the price discussion. You will start to find, as so many other planners have, that the conversation will continue to get easier each time.

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Kylie Denton

Kylie Denton

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