In our experience, this confusion will normally result in a range of billing and quotation methodologies being employed within a firm. As a consequence, opportunities to bill on a value basis are regularly lost and, importantly, clients are not sold the value of the advice or service that they receive.
To discuss fees with a client can be difficult at the best of times, but when the client or target presents a challenge, and either wants to negotiate a lower price or seeks justification for a fee that has been quoted, it can become extremely difficult to manage the environment and achieve a good result.
The concept of selling value is counter-intuitive to many individuals within professional advisory firms. Often they believe that the client will be most easily satisfied with the lowest quote or bill, however, provided the value proposition is explained and delivered in the right way, the opposite is usually the case.
We have developed a training course that helps individuals become confident with the value concept and able to have successful fee discussions with clients.
The content of the training includes:
- Personal attitudes towards fees-discussing why some individuals find the concept of discussing money difficult and techniques to overcome this
- The price/value equation-examining the correlation between a price and how the client sees value in the offering
- Price objection handling-a robust technique that identifies the reason for the price objection and the various strategies to manage and minimise the objection
- Negotiation-how to have an effective discussion about fees that concludes in a win-win result