One of the most difficult conversations an adviser can have with a client is about fees. Whether it’s transitioning to a new pricing model or justifying the current one, many advisers hesitate when it comes to discussing what they charge.
But here’s the truth: when advisers are confident in the value they provide, these conversations can become opportunities to strengthen client relationships. In this article, I’ll share how advisers can build that confidence and take control of pricing discussions with clients, turning what can often be a stressful topic into a positive experience for both parties.
There’s a legitimate challenge when it comes to discussing fees and it’s not uncommon for advisers to feel a sense of trepidation when discussing this topic with clients. After all, no one enjoys the prospect of a client questioning their worth, expressing dissatisfaction over the price, or worse, losing a client altogether.
However, much of this anxiety stems from a lack of confidence in the fee structure itself. If an adviser isn’t entirely sure how the fees were calculated, or if they feel the fees are arbitrary or misaligned with the services being provided, that uncertainty is bound to come across in client conversations.
There’s power in transparent pricing. One of the key principles at Peloton Partners is that confidence in pricing starts with transparency. When advisers are able to clearly explain how fees are calculated and show the direct correlation between the services provided and the fee charged, clients are much more likely to understand – and accept – the fees.
Our client-specific pricing model is built on this foundation of transparency. Rather than relying on arbitrary percentages or flat rates, the fees in our model are determined by the complexity of the client’s financial situation and the value of the services provided (which can include a funds under management percentage). Advisers who use this model can walk into client meetings fully prepared to explain why a particular fee is justified, backed by data and a structured approach.
It is also important to invest time in training advisers to explain their value effectively. This includes role-playing common objections, crafting clear explanations of services, and presenting the fee in a way that is both professional and transparent.
The goal is to equip advisers with the ability to handle these conversations not just reactively, but proactively helping clients see the full value of the services they receive.
When advisers are confident in their pricing structure and prepared to discuss it with clients, they find that objections rarely arise. In fact, many clients appreciate the transparency and professionalism that come with a well-structured fee conversation. Rather than viewing the fee discussion as an obstacle, advisers can turn it into an opportunity to reinforce the value they provide and strengthen the client relationship.
In my experience, firms that have transitioned to a more transparent, client-specific pricing model see higher retention rates and greater client satisfaction and on average, higher fees. Clients feel respected when they are given a clear explanation of fees and value, and this respect builds trust—a key component of any successful advisory relationship.
Discussing fees with clients doesn’t have to be a source of anxiety. With the right tools, training, and a structured pricing model, advisers can approach these conversations with confidence. By focusing on transparency and clearly communicating the value they provide, advisers take charge of the conversation, and everyone wins.
Richard Abbey is a principal at Peloton Partners.