How to Reset Your Discount Reflex So You Can Set Your Price with Confidence

This episode discusses how advisors may unconsciously imagine a prospect becoming a client and then imagine losing that client when stating a fee. It says that response can trigger loss aversion, leading to unnecessary discounts with new clients and hesitation to raise fees with existing ones. The conversation covers discretionary pricing and how a practice-wide fee policy can serve as a discipline tool and safeguard by externalizing the fee as a policy standard.

1. Advisors may imagine a prospect becoming a client and then imagine losing that client when they state their fee.
2. That internal response can trigger loss aversion and lead to unnecessary discounts or hesitation to raise fees.
3. Discretionary pricing can make advisors emotionally vulnerable when setting or discussing fees.
4. A practice-wide fee policy can act as both a discipline tool and a safeguard by treating the fee as a policy standard rather than a personal decision.