There are so many ways to price your client engagements. Join me in the first of five videos discussing pros and cons of different pricing styles and how you can use pricing to support your target market.
Pricing your business really is limited only by compliance and your creativity. It needs to reflect what you want out of your business.
First step is are you fee only? Are you a hybrid? Are you all commission? Full disclosure, I end on the fee-only side of things, through experience and who my pals are. So, if you’re here for commission stuff, you might be in the wrong place. Sorry.
Let's assume that you’ve figured out fee only, hybrid or commission then your next step is to really think about what you want those engagements to look like. Your pricing needs to lend itself to the type of engagements you want. Think about whether you want long-term relationships with your clients. Some folks want to work with a client for 10, 15, 20 years. Others want that constant new challenge, a new battle, a new problem. Others like to mix it up so they balance their practice with a certain number of long-term clients with a little space for that change-up surprise client.
There’s also issues on pro-bono but we’re talking about pricing today and there’s no price on pro-bono so we’ll talk about that another day.
I want you to think about what you want. Your pricing is going to support that engagement style.
Another aspect you want to consider is what's included in your engagement. Are you providing comprehensive financial planning or do you want to focus on just one aspect, perhaps asset management? And if you’re providing that comprehensive planning, how are you arranging that? Are you in the trenches doing all aspects? Do you have a team, where you’ve got one person who’s handling taxes and another does investments and you decide you just want to be client-facing or work on their goals and more personal side? There are no right answers on this, it’s what you want, what you dream of, but you need to give yourself time to think of those different aspects and make sure the pricing, the engagement, and your client-facing structure all work together to support you dreams.