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The Growth Mindset by Rick Capozzi

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Chapter 17A Question of  Value, Not Price

“Knowing yourself is the beginning of all wisdom.”

Aristotle

Fee compression is felt by wealth managers and asset managers alike. Technology has created substantial disruption and it will continue. Amazon, Uber, Airbnb, Facebook, Netflix, Alibaba, Snapchat, Apple, Google, Waze, and so on. They all challenged the status quo. Commoditization by definition means you could only compete on price. Therefore trying to compete on price in the advice business is like Ritz Carlton trying to compete on price. Instead, focus on increasing value and prioritizing that value to different clients. A team with a $200 million book may have the opportunity to gain four to five times more assets through referral opportunities or by gathering additional client assets from competitor firms. Once you view the math from a big‐picture perspective, it may help you see the overall value of a single client. The future will force the advisor to look and feel more like a family office. Protecting your price starting by understanding the value of each client relationship. The research goes on to say that the following elements in the Harvard Business Review, September 2016, the cover “What Does Your Customer Really Want?” Product and services deliver fundamental elements of value that address four kinds of needs: functional, emotional, life‐changing, and social impact.

One way of evaluating and fine‐tuning your client base further is by studying it from a sociological ...

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