New report lifts the lid on pricing advice


By Megan Tran

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Elixir Consulting has launched the fourth edition of its “Adviser Pricing Models Research Report” in a bid to demystify the pricing strategies of financial advisers.

The production of the report included consolidating and analysing data from 320 advice practices on how they charged for their services, Elixir managing director and report co-author Sue Viskovic said.

“Pricing financial advice has always been complex and when you add in a deep-dive to pricing insurance advice, with all of the variables we found used by advisers, it’s been no small feat to interpret the data into a piece of work that will be incredibly helpful for every adviser wanting to determine or refine their own pricing model,” Viskovic said.

Elixir said the research provided insights on the pricing models used and figures charged for advice pricing, including insurance advice, engagement fees for aged care, estate planning and financial planning.

“If you’d told me a decade ago that we’d now be in an environment where every adviser has to charge a fee for their financial advice, and yet there is more confusion and curiosity about pricing models than ever, I’d have probably laughed,” Viskovic said.

She said while pricing was often talked about in the industry, the detail around how advisers charged was “still elusive to most” and remained a private and commercially sensitive topic.

The insights came from a research survey of Australian advisers, who shared their pricing models, challenges and solutions, and the responses were more detailed than in previous versions of the research, report co-author and Elixir business consultant Lana Clark said.

“When we decided to expand on the questions we posed to advisers in this latest edition, we never dreamed that the responses would be so complex,” Clark said.

In an earlier blog post on preliminary insights from the research, the firm revealed advisers were significantly underperforming their goals when it came to business profits, with an average of 13.5 per cent profit across all the practices surveyed compared to a 35 per cent average profit target.

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