Lifting the lid on pricing financial advice

From

Sue Viskovic

Like anyone that has nurtured and worked tirelessly to produce an in-depth research report, yesterday’s announcement of the launch of the Adviser Pricing Models 4th Edition Research Report puts to bed one of the most extensive research reports conducted by Elixir Consulting to date and provides a sense of relief to principal Sue Viskovic.

“This has been a mammoth task consolidating and analysing the data to produce the Adviser Pricing Models Research Report fourth edition. It includes in-depth data from 320 advice practices on how they charge for their services.” stated Mrs. Viskovic, “Pricing financial advice has always been complex, and when you add in a deep-dive to pricing insurance advice, with all of the variables we found used by advisers, it’s been no small feat to interpret the data into a piece of work that will be incredibly helpful for every adviser wanting to determine or refine their own pricing model.”

The research provides insights and the models being used and figures being charged, for pricing:

  • insurance advice
  • engagement fees for new clients with comprehensive and limited scope advice,
  • engagement fees for aged care, estate planning, finance advice
  • ongoing fees – for comprehensive and limited scope advice
  • specific application of fee models in 6 client case studies, and
  • complete snapshots of 6 different Business Models

“If you’d told me a decade ago that we’d now be In an environment where every adviser has to charge a fee for their financial advice, and yet there is more confusion and curiosity about pricing models than ever, I’d have probably laughed” shared Mrs Viskovic. “Whilst pricing is often talked about, the intricate detail of how advisers charge for their services is still elusive to most; today it remains a very private and commercially sensitive topic.”

“I want to say thank you to all those advisers that took time out to complete the research survey,” says Sue, “you were incredibly generous in sharing your pricing detail, your challenges, and the solutions you’ve found to overcome them. By doing so you have provided great insight into the depth and breadth of the pricing models used in the Australian Market.”

The Pricing Model Research Report 4th Edition is now available for online purchase.

To highlight some of the take-outs from the research Sue Viskovic and co-author Lana Clark will be publishing a short series of videos of their discoveries during the countless hours preparing the data and compiling the research report.

“When we decided to expand on the questions we posed to advisers in this latest edition, we never dreamed that the responses would be so complex and detailed” states Ms. Clark, “Respondents have been so generous with the information, making this report this biggest and most in-depth to date.”

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