Pricing Series

PP 038: PRICING SERIES – Adriano Donato – Pricing for high and low complexity clients in an independent, 100% fee for advice financial planning practice

Adriano Donato is from Roskow Independent Advisory, which is a self-licensed, independent advice practice with offices in Melbourne and Brisbane.

In this episode, we chat about how Roskow price their financial advice, using a 100% fee model. And how they do that successfully for both high and low complexity clients. 

Adriano will be part of a panel talking about pricing in an independent financial advice practice, at the IFAAA Symposium on 30 October in Melbourne. It’s an opportunity to pick his and others' brains about all things indie advice.
If you’re interested in learning more about the IFAAA Symposium, head on over to IFAAA.com.au and check it out. 

Listen and learn

In this episode, we talk about:

  • How and why Roskow price their advice, using a 100% fee model (and we get into the nitty gritty numbers)
  • How Roskow make a pure fee for advice model work for both high and low complexity clients
  • What mistakes Roskow made with their pricing along the way

Oh, and Adriano sings and talks soccer...

PP 036: PRICING SERIES – Rick Horvat – Pricing for sustainability and longevity in a pure fee for advice, independent financial planning practice

In this episode we’re joined by Rick Horvat from Horvat Financial Advisors

Horvats is a family-based, self-licensed, independent financial planning business in Melbourne, about 10 years old.

It's small - with 5 staff and just over 100 clients - and wants to stay small. The business decisions their team have made around size, have influenced not only how they run their business, but the types of clients they look after and how they price their services.

Rick will be part of a panel talking about pricing as an independent adviser, at the IFAAA Symposium on 30 October in Melbourne. The panel will be diving into some pricing examples and sharing their experiences with fee structures and decisions, so you can learn from their mistakes and successes. 
If you’re interested in learning more about the event, head on over to IFAAA.com.au and check it out. You don’t have to be a member to attend.

Listen and learn

In this episode, we talk about:

  • What big business decisions have been made at Horvats that have influenced how Rick and the team have priced their services, so their business remains sustainable and enjoyable over the long term
  • What pricing mistakes they made (including not having clients sign Terms of Engagement near the start of the process)
  • Why Horvats don’t put their fees (even just a range) on their website
  • What it’s like working with family

PP 027: PRICING SERIES – Gary Lucas – Pricing values and outcomes based advice (plus bonus portfolio strategy chat)

Gary Lucas - DMG Financial

Today we're joined by Gary Lucas who is a financial planner and director at DMG Financial in Sale – a regional town in Victoria with about 14,000 people.

DMG Financial is a mature business. It has accounting and audit divisions, and employs around 40 staff.

The chat I had with Gary was recorded back in April 2015, not long after the Trowbridge report was released. 

Listen and learn

In this episode, we talk about:

  • How DMG Financial – which is a mature financial planning business with a lot of legacy clients – is transitioning away from commissions and funds under management, to dollar-based fees
  • The process Gary uses with clients, and where the fee discussion fits within that process
  • How Gary has managed to get the team on board and involved in the transition process
  • What DMG recently changed around how they manage investment portfolios, so they are able to deliver better outcomes for clients
Engage the whole team - Gary Lucas [DMG Financial]

PP 026: PRICING SERIES – Chris Bates – Why I charge flat advice fees for my financial planning services

Chris Bates

Today we’re joined by Chris Bates from Canopy Private, which is a small financial planning practice in Sydney, that’s about a year old.

The chat I had with Chris was recorded back in April, not long after the Trowbridge report was released. 

Around that time Chris also published an article on LinkedIn about his views on commissions, which got a big reaction, including this doozy.

So I contacted Chris and asked him if he was interested in sharing how he charges, so that others can get an insight into why he charges the way he does, and how he makes fee for advice work in his business.

Listen and learn

In this episode, we talk about:

  • How Chris got to where he is today
  • Why Chris charges a fee for advice (no commissions or FUM/AUM), and the impact of this on how his clients see him
  • The exact numbers Chris charges his clients - for full financial planning advice, as well as insurance only advice (including what happens at claims time and if insurance is denied)
  • The mistakes Chris made with his pricing and the impact it has had on his business
It frees you to give advice - Chris Bates [Canopy Private]

People on this episode

Mentioned on this episode

How to listen

PP 024: PRICING SERIES – Darren Johns – How I price my financial planning services

Darren Johns

Today we're joined by Darren Johns from Align Financial on Sydney’s northern beaches, for another episode in our pricing series.

Align Financial is a small practice that is self-licensed, and has been using a flat-fee pricing structure since 2010.

Listen and learn

In this episode, we talk about:

  • How Darren uses a combination of understanding both the inputs (e.g. share purchases) and outputs (e.g. tax savings) of a client engagement, to price his services
  • A pricing example for a 50 year old couple, approaching retirement, as well as a risk only case
  • How using fee-based pricing has helped produce a more stable income stream for Darren's business
Pricing is a lever you can control

PP 023: PRICING SERIES – Melissa and Steve Crawford – How I price my financial planning services (plus bonus value-bombs)

Melissa and Steve Crawford

Today we're joined by Melissa and Steve Crawford, who are husband and wife, and run three businesses in the financial advice space.

Melissa has a background in insurance and has an insurance coaching business called 19Thirty.

Melissa is also the insurance specialist at Experience Wealth, which is Steve’s business. Experience Wealth is a financial planning business focused on serving Gen X and Y young professionals.  

Steve also has a coaching business called Your Spending Coach, which shows advisers how to use Xero to manage their clients' cash flow.

Listen and learn

In this episode, we talk about:

  • How getting crystal clear about who your ideal client is, can help you create a service offering that is exactly what your clients want (and need) 
  • How Melissa and Steve price their financial planning services, including life insurance
  • Why they transitioned from providing commission–based insurance advice, to a fee model
  • How aligning (i) what the client perceives as value, with (ii) the value the business delivers to the client and (iii) the pricing model, can have a huge positive impact on your business
Perception of value

PP 021: PRICING SERIES – Clayton Daniel – How I price my financial planning services

Clayton Daniel

Clayton Daniel is a young adviser and the founder of Hillross SIlverstone in Sydney, a financial planning practice that has been in operation for about 2 years. 

Clayton is also one of the founding members of a group called XY Adviser.

Clayton recently made the switch from charging commissions on insurance advice, to a fee-based approach, and it's had great results for his business.

Listen and learn

In this episode, we talk about:

  • Why Clayton decided to change his pricing structure and move to very defined service packages
  • The exact numbers Clayton charges for each package
  • The results Clayton's seen in his business (which includes a doubling of top-line revenue)
People work with people they like.