Advisers are more likely to win over clients by being upfront about their pricing models and the reasons behind their fees, according to young advisers' lobby group XY Adviser.
XY Adviser spokesperson Ben Nash – who is also an adviser at Synchron practice Successful Ways – said transparent pricing helps clients appreciate the value of advice.
“It's about having a clear philosophy for what you're giving to clients for the value you are charging and having clear reasons behind why you do things the way you do,” he said.
“That allows clients to understand easily what you're going to do for them.”
This theme emerged at an XY Adviser event last week, where advisers and guest speakers discussed different pricing models and value propositions, according to Mr Nash.
While both asset-based and fee-only models were presented at the event, Mr Nash believes different models suit different circumstances and advisers should consider what would work best in their market.
“We're not saying ‘This is the best way of doing it’ but just starting the conversation and giving people different ideas,” Mr Nash said.
In his business, for example, Mr Nash has chosen to use some asset-based fees to cater to his largely Gen Y client base.
“It's because we're dealing with younger clients with small balances where fixed fees can't always be supported. I explain to clients these reasons why and what they get,” Mr Nash said.
In future, he expressed the hope XY Adviser will continue provoking discussions and providing advisers with networking opportunities.
“The whole idea is to help other advisers learn about how they can build their businesses to help their clients,” he said.
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