Value and cost concept.
This is a mindset concept. We have tactics on how to do this with your product services and how to position with clients, but we're talking about you and how you think about the value you provide and the associated cost.
Now, I use the word cost because fee is an industry, advisor centric term. It's not a client friendly term. Consumers prefer the word cost over fees. So change your vocabulary with yourself, your team, clients, and prospects to the word cost.
Think about value and cost on a balanced weight scale. If your value is heavier than the cost, from the client's perception, they will care little about the cost. As financial advisors, we get too caught up in the cost. Most financial advisors undercharge their services because they're so caught up in cost. Many advisors charge under the industry averages. It's interesting what is happening in our industry; different services, more automated services, and robo-advisor services are driving the average down. A full-service financial advisor's cost really has not changed. They're still charging the same, and you are allowed to also.
If you're in the XFA Coaching Program, you are not an average advisor. You're already an above-average advisor. So even if you charged the industry averages and gave above-average service, you got something going. All of you are worthy of charging above average.
Remember, this is a mindset space.
We have a lot of self-limiting beliefs when it comes to cost and how you price your services for consumers.
It's like an anchor on a boat.
Anchors hold us in place. It's hard to change. It's hard to move, and that's how we are as humans. We naturally crave equilibrium to go outside our comfort zone or do something different. Our mind says, no, no, no, no, we're back in here, and this is how we do things around here. It's natural for us to stay at our pricing in our bubble and not break out.
That's the fixed mindset.
There's a great book by Carol Dweck about Mindset, and there are two kinds. She talks about the fixed mindset, which is like the anchor where we're stuck, and the growth mindset, where we're always evolving, learning, and getting better.
I'll give you a parallel story here.
In my years as an advisor, I came across many CPAs. There was a CPA in my town in North Carolina. He was really good, but he was charging the same amount for over 20 years, which was way below average.
I said to him, "Gosh, you know, you do a really good job, but you charge so much less, and you said you've been charging the same amount forever. What would happen if you doubled your prices?"
He said, "Oh my gosh, I would lose half my clients."
I replied, "I just observed you say you could make the same amount for half the work."
He was so caught up on "I would lose half my clients, and I just can't do that."
That's the kind of fixed mindset that we get caught in this trap and worry about losing clients.
Every financial advisor we've worked with at XFA that adjusts their pricing did not lose clients. Their clients say, "Well, it's about time you adjust your price. We were wondering when this was going to happen."
I'm not talking about adjusting pricing to adjust pricing. There would be some value associated with the price. I'm talking about your belief in your value and how the cost relates to it.
Go back and really think about the value you provide; take a moment and write that down. What value do you provide your clients, and how is it better than other financial advisors out there? Financial advisors out there are not doing much at all. I already know you're better than them.
What makes you better? Write those down.
If you need a mental highlight reel, think about some of your best moments advising clients. When did you make a difference for them? Start mentally putting those together, like a highlight reel that you can call upon to give you confidence for the week, day, or before a meeting with a client or prospect.
You are valuable. You have to recognize it and remember it inside yourself. You have to believe that you are valuable. The best way to confirm your value is to ask your clients. They love what you do, and that's why they're working with you. Ask them what they value most about your services, listen, and write it down.
Visualize your value and cost on a weight scale. You will start to see that your value is great and that what you're doing and can be doing is just as good as the industry average. In fact, it's better than the industry average. We'll teach you how to position your service with clients, but first, you must believe in your value internally.
Focus on what you are doing that you believe in and what clients enjoy you doing. Come up with your own highlight reel of your best moments, advising clients because that makes you eXtraordinary.
I look forward to hearing about your development and progression on the value and cost concept.
Remember, the small things up here could unlock tremendous growth for your practice.
You are worth it. You're not ordinary. You are eXtraordinary.
Let's shift that mindset, pull up those anchors, and start to get big results.
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