Sean Nisil is a fee-based financial advisor, whose mission is to help people to live their ideal life now and in retirement.
What is the most important thing you can share about pricing?
- Clarity: What am I, as a service professional, going to be providing and setting the expectation clearly.
- Compensation as a financial advisor can be commission or fee-based.
- The fee-based model allows the customer to understand the service being offered, how much it will cost and what the value is they will receive.
- Commission-based fees can cause a conflict with your customer's best interest.
- As the customer succeeds, so does the advisor. If the customer doesn't succeed, neither does the advisor.
- Registered Investment Advisor (RIA) practices take the value pricing model and overlay it on the financial industry.
- Fee-based pricing is a competitive advantage in the financial industry if you are in it for the long-haul.
How do you help customers in a value pricing conversation?
- Ask good questions: What are your pain points when it comes to retirement?
- Talk about goals and your ideal life. If you can't fund the ideal life, you simply aren't going to get there.
- Number one rule: spend less than you make.
- People like choices. It puts the customer in the driver's seat and allows you to work together as a team.
- Part of serving is having the money conversation.
- Remind the customer of the service you are providing and the value that you are creating.
How do you advise those who are timid about pricing?
- When you charge what you're worth, it will increase the quality of your customers.
- When you are timid about delivering a service, you can undercut what you're worth.
- If you aren't being paid what you're worth and you're in cash-flow crisis, you will not be around to serve the customers you are serving right now.
- If you don't know why you are in business or you don't know the value you are providing, it will be hard to have a value conversation with your customer.
- If you're having doubts about implementing value pricing, Start With Your Why (Simon Sinek).
- You need to have a mission statement – both business and personal.