The Price is Wrong. What Next for Wealth Advisory Fees?
Pricing is one of the hottest topics in wealth management at the moment. This has a lot to do with regulation, proposed or enacted (in both the US and Canada).
But regulation is only the catalyst for a change that is long overdue. The 2016 Financial Performance Study released by IN Research revealed that only 2% of investment advisory firms employ ‘value-based pricing’, and 46% of firms do not charge additional fees for specific services.
By not charging fees, advisors (counter-intuitively) are locking out the very customers they need in order to grow, as well as sacrificing profitable growth that is available today.
Smart pricing represents a big opportunity for firms who do it right. This article is the second in a series about how it can be done.