At a glance
- Michael Kitces and client communication expert Carl Richards discuss whether the advisor should accept the higher fee and how much more to charge.
- A client's willingness to pay above the schedule can suggest the advisor has underpriced the service, the episode says.
- Kitces and Richards say the choice for advisors revisiting fees is whether to treat the high-paying client as a referral source or cap fees to keep one schedule.
Episode 202 of Kitces & Carl examines clients willing to pay more than an advisor's standard fee, according to Kitces.com's Nerd's Eye View. Michael Kitces and client communication expert Carl Richards discuss whether the advisor should accept the higher fee and how much more to charge.
A client's willingness to pay above the schedule can suggest the advisor has underpriced the service, the episode says. Advisors who feel the client is overpaying may set a fee maximum, which can prevent a hierarchy among clients and leave one fee schedule to refine.
Kitces and Richards say the choice for advisors revisiting fees is whether to treat the high-paying client as a referral source or cap fees to keep one schedule. A high-paying client can likely refer similar clients, or the extra revenue can fund capacity without chasing more clients at that level. Neither approach is right or wrong.
Reported by the Practice management desk from Kitces — Nerd's Eye View. Published . Corrections