People do not buy hours
We believe costing should be based on value to client. Time costing is a method so beloved of Solicitors, accountants and many consultants but in reality they create a barrier between client and company as the fear of picking up the phone will result in an invoice.
It is often the case that the clear winner in this type of pricing is the company and not the consumer.
The proposition that “time is money” is over 250 years old and attributed to Benjamin Franklin, however, clocks do not write cheques and you don’t attract and retain clients by selling hours. Instead Pryor Portfolio Management propose to sell solutions, service and value.
Here is why we believe in menu pricing;
- Pricing a job at outset gets any objections on the table before you start, far better than arguing over the bill at the end.
- Clients feel special as they are receiving a bespoke service for a fixed fee.
- Sharing the risk, by paying towards a fixed structure projects experience and confidence in the advisers ability to deliver for those fees. Clients will feel that you must know what you are doing otherwise we would not have commited to it.
- Clients will appreciate that they are not about to be ripped off. Can you imagine how you would feel if an airline charged by the mile for your ticket? Maybe the pilot would deliberately take the long route to rack up costs!
- Value pricing forces internal efficiency. Fixing revenue ensures you will delegate and review work flows so you can offer service whilst ensuring you meet your own profitability aspirations.
- Annual price increases are absorbed naturally. No firm likes sending out notices of hourly rate hikes, and no client likes to receive them.
- We do not want an environment where a client is scared to pick up the phone to ask a question. We regard any communication with a client as healthy because if they were not speaking to me then they would be speaking to someone else!
- It is Pryor Portfolio Management’s belief that value pricing encourages trust and nurtures long term relationships with satisfied clients leading to mutual profitability and success.
How Pryor Portfolio Management are paid
The initial meeting to confirm your requirements, review our Client Agreement, undertake a comprehensive information gathering exercise and discuss the scope of our services is without charge.
Thereafter, fees as detailed within our Client Agreement will be chargeable. In brief, these are as follows:
Preparation of a bespoke Financial Management Plan via our Pure service
We will agree a fixed fee with you to cover the cost of gathering and collation of all information and creation of the generic Financial Management Plan. The fee payable will be based on a number of factors such as time it will take and complexity of the work. You will not be charged any more than the amount agreed with you. A typical fee for this service is £995 plus VAT.
Implementation of your financial plan
If we are instruction to execute the recommendations we have made we will refund any fee you have been charged less £250 plus VAT. This fee is retained as the Financial Planning document will have a value in its own right.
The recommendations could potentially include Insurance or mortgage work where we receive a fee from the companies we place this business with.
Lump sum investment – our typical charges are;
Up to £500 000 – 3%
£500,001 – £750 000 – 2%
£750 001 – £1 000 000 – 1%
Above – £1 000 000 – by negotiation.
From experience a client investing £1 000 000 compared with a client investing £10 000, the £1m client will demand more of a company’s time which is why a % of fund is a fair way of charging.
Regular Contributions – our typical charge is;
2.5% of the initial investment. This means a client paying £100pm into a pension over 25 years will pay £750 in fee’s, spread out over the 25 year term.
The fee for our review service is 0.5% per annum of the value of your combined portfolio we manage for you.
Importantly we do not charge for rebalancing portfolio’s or fund switching.
Ad hoc advice
From time to time we are asked to provide advice to people who are not clients of Pryor Portfolio Management and on this occasions and this occasion only do we resort to an hourly rate of £110 plus VAT.
The people who often ask for this advice are employee’s with questions regarding their final salary pension scheme or changes to the scheme where the advice is “We recommend you seek Independent financial advice”
If during this meeting the discussion turns to that enquiry considering becoming a client of Pryor Portfolio Management then the hourly rate will be waived.