January 21, 2009

Last week I had the opportunity to meet with the client and his advising team for whom we had created a Family Wealth Goal Achiever for. The clients were a relatively young couple from humble backgrounds. She is currently a school teacher while he is in the medical field. They lived a very modest lifestyle relative to their wealth and income, yet they have managed to accumulate $40 Million of net worth and haven't quite come to grips with what having that amount of wealth even means.

They were unaware that there was a tax that could take 45% of their wealth at their death. Obviously, their planning process would require a lot of ongoing education. In addition, they had no concept of what good planning would entail or what it would cost.

“Why so much?” he asked.

Instead of getting distracted with analyzing the fee, I used a story to convey the message. I explained that a year ago I was diagnosed with prostate cancer.  I went through a long process of making decisions before I decided what treatment I would have and who would provide it. I talked to friends who had been through the same thing and got referrals to good professionals. Ultimately I had to make a decision based on the information but more based o the professionals I had chosen to work with.

I woke up after surgery and was told it was successful. But in truth, I had no idea what was done or whether the procedure was a success. I was in the hospital less than twenty four hours and my bill was $90,000. Was it worth it? For me, the answer was without a doubt.  I wanted a result.

The client understood this immediately. He now had a context that he could relate to. Before this conversation, there was nothing for him to relate to. What is anything supposed to cost? If it delivers the value I desire, cost starts to be less of a factor.

Try using a similar story in your fee quoting life to give context and meaning to an almost invisible product.

Make 2009 a great year.

Randy Fox, CFO, InKnowVision, LLC

www.InKnowVision.com

Randy@InKnowVision.com

LinkedIn: Randy Fox