10. Don’t: Forget about other product areas. A banker once used the expression: “The more you do, the cheaper it gets. You have seen the TV ads about bundling insurance products. Let clients know how fees can be reduced if they use more products.
11. Do: Let them know their options. You are the client’s primary point of contact. If they want to speak to someone higher up to express their displeasure, have a path to make that happen. Your office manager is logically the next step up.
12. Don’t: Present it as a done deal. The fee increase takes place on a specific date. Maybe it happens in stages. Let them know the timing. The client might choose to shop around or talk with a competitor. The chances are once one major firm raised fees, the others did too.
13. Do: Tell clients how much you value the relationship. The relationship you have cultivated has value. Your client probably places a high value on it. Remind them you feel the same way.
14. Don’t: Project that nothing else will change, only the price. If nothing will change but we are just charging you more, the client may feel the firm is greedy. The client isn’t benefiting. What has the firm done in the last few years that benefits the client? It might involve technology upgrades. How has the firm’s investment helped you better service your clients? Tell them how they benefit.
No one wants costs to go up. Clients and advisors are seeing it happen everywhere in their personal lives. It’s logical it will happen within the financial services industry too.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” is available on Amazon.