Join our FREE practice success portal and accelerate your practice growth

Audere Coaching & Consulting logo
Search
Close this search box.

Why increasing fee isn’t as risky as you think

Do you want to know the fastest strategy to scale your advice firm?

Increase your fees.

It’s so blindingly obvious to me, and kind of ironic that with so many firms seeking to use what they’ve already got to make more, the answer is often sitting right in front of them.

I have developed this superpower through the years of being able to build a practice fee model in 90 mins (with the aid of my trusty tool feemodeler.com.au).

Sometimes it’s a great 90 mins full of light bulbs going off all over the place, but it’s not worth diddly until it’s implemented.

And that’s where the questions start, “…I can’t do this for all clients though, right?” “I’m not sure my clients will go for it…”

“Let me think about it. I’ll just need to check those numbers”

Ok. Let’s play numbers.

How fee sensitive do you think your clients are?

If you increased your fees by 5%, how many clients would leave you?

How about 10%? How many extra would choose to go?

What if you did 20% across the board?

How about if it was 30%?

(BTW, if you’re listening to this thinking, “I do asset-based/ commissions…” don’t fall into the trap of thinking working out your cost recovery margins isn’t relevant to you. Trust me, when you don’t decide your price directly, it’s DOUBLY relevant)

Let’s put aside the fee increase vs. clients leaving questions for a moment because there’s an even better question than that. Two actually.

How many would have to leave after an increase for your revenue to drop?

How many would have to leave for your profit to drop?

Get ready to be amazed. The maths alone will make you realise how powerful this is.

I only wish I could film your face whilst you watch it, the video link is here.

Stu PS. If you want the detail underneath this calculation, reply and I’ll share. If you want help from me just email me back at help@audere.com.au

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.

Check out what you'll get access to
A man in a collared shirt is seen with words "Tools & Templates," "Special Access," "Training," and "Masterclass" surrounding him against a blue background.
Free portal

Access a free comprehensive portal with tools and guides designed to increase revenue by 20% and more.

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.

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