Join our ultimate FREE practice success portal, the best place to start in 2024

Audere Coaching & Consulting logo
Search
Close this search box.

Fee Sensitivity Doesn’t Exist

One of THE best books I’ve ever bought on the subject of the relation between value and fees is Priceless by William Poundstone.

Over these next couple of blogs, I wanted to share a few insights from the book that I’ve used extensively when helping my clients to make it easier for their clients to say yes sooner as part of their new client engagement process.
It’s obviously just one part of the framework I teach – The Appointment Flow system – but for me, it’s about a system that:
  • Allows you to have a deeper, more “real”, goals-based conversation,
  • Deliver those lightbulbs, “ah-ha” moments where clients come to realise what they need (aka help and advice),
  • Outline your value proposition clearly and get a “we’d like to work with you” on the day.
That last bit – on-the-day – is key. We owe it to clients to take action, and if you get your meeting right there should be no reason they can’t make the decision to take action there and then.

But what about the question of cost?

I think the most important shift that I had to personally make, which allowed me to make this work first for me, was to accept the fact that fee sensitivity does not exist.
To be honest, I found it hard to agree with for a long time after it was put to me. I mean, surely, there was a point where something was simply too expensive, right?
But that’s the thing – it’s not the case.
In truth, if we look at anyone who gets themselves in financial trouble, the issue is usually a lack of cost sensitivity.
It explains why most people are more likely to spend money on things they can’t afford than sensibly refuse anything above a certain price level.
The vast majority of buying decisions are emotional ones, which means when people make a decision to pay a fee they either:
  • Believe the benefit(s) they will receive – be it financial, emotional, or otherwise – exceed the value of the outlay,
  • Are more motivated by what they will receive now than any future negative impacts of paying for it,
  • Have sufficient resources that the outlay is not significant enough to cause any negative impacts (which is a whole other issue when it comes to the value equation for wealthy people!).
In truth, our own perceptions of fee sensitivity are often driven by our own perceptions, experiences, and even insecurities, all of which can be addressed by having a process that works to follow.
However, being willing to suspend the belief that fees are a barrier to new clients engaging is good starting point.

Keen for more tools, templates & insights?

Join our free best practice portal

Working with a coach shouldn’t be a guessing game.

That’s why we want to invite you to sample for yourself the unique body of training, tools, templates and resources we created specifically to help practices grow, expand and evolve.

A man in a collared shirt is seen with words "Tools & Templates," "Special Access," "Training," and "Masterclass" surrounding him against a blue background.
The best free portal for practice owners

Access a free comprehensive portal with tools and guides designed to increase revenue by 20% and more. Trusted by over 200 practice owners like yourself, there isn’t a better place to start if you’re serious about scaling your practice business in 2024.

Ready to talk 1-to-1? Let's chat.

Related articles

Introducing Pipeline Tracking With finsight.au

Read more »

Pricing for people who do the right thing

Read more »

The Art of Pricing: Finding the Balance Between Value and Fairness

Read more »

The Ultimate Guide to Adviser Pricing

Read more »

Careful what you wish for?

Read more »

Is Pricing the Ultimate Lever?

Read more »

Fee Sensitivity Doesn’t Exist

Read more »

The Trouble With Pricing Risk

Read more »

Pricing & The Importance of Loss

Read more »

The 5 Most Common Pricing Mistakes

Read more »

The Pricing Trap

Read more »

Why increasing fee isn’t as risky as you think

Read more »

This pricing conversation had me mad as hell

Read more »

Contact us

Let’s talk about how we can potentially help you and your practice to grow and evolve. We believe great advice is becoming more valuable than ever.

Audere Coaching & Consulting logo
Black and white photo of a man in a checkered shirt and black pants, gesturing with both hands while speaking. He has a device clipped to his belt.
Image showing profile pictures of four people alongside a rating of 4.9 stars and the text "200+ practice owners.
Join our free portal that will take your practice to 6, 7, and even 8 figures.

The one and only portal for practice owners designed to increase revenue by up to 20%

Get access to comprehensive resources with a focus on all aspects of your practice – from crafting irresistible value propositions resource planning and more. New content is added every week!

There truly isn’t a better place and time to start if you’re serious about your practice.

Be First To Know

Register your interest to become a participating practice owner or, as a BDM or PDM become an accountability coach

Register for free

There are a lot of insights waiting in since our goal is to provide value first.

Join List

Join our list and get the latest best practice insights in your inbox every fortnight