TWO PRICE POINTS
Do you have two price points? You have your simple package, and your expensive package, right? It probably looks something like this.
SIMPLE AND COMPREHENSIVE
Then you have probably combined those two options so that there is the very simple, vs all the bells and whistles, so that it looks something like this.
What if there were clients who genuinely don’t want a discretionary testamentary trust, but they are not price sensitive. What if those clients do want a comprehensive plan for the second half of their retirement? Should you be charging them the same price as someone who really just wants to appoint an Attorney, a Guardian, an Executor, and name some beneficiaries?
I don’t want anyone doing a simple document
I understand that you probably don’t want anybody doing a really simple, appoint an attorney and nothing else document. The thing is that, having explained this to the client they may still want the simplest possible option. We advise, they instruct.
If you had a third option, for someone who really doesn’t want a mutual contract will or a gift and loan back option, then you will have an easier time convincing that client that they don’t want the simple package. You will also appeal to someone who definitely wants a complete retirement plan, and they definitely want to do more than appoint the Attorney. You cannot get through the week without seeing a news story about aged care, and choices in retirement. Your clients are already thinking about it, why don’t you offer them a solution?
KEEP THE SIMPLE DOCUMENTS WHERE THEY BELONG
The other advantage of this is that you can keep the simple documents where they belong. You are not giving your clients the choice between the simple package and a full blown life estate option, you are giving your client the choice between the simple documents and the middle of the road package. If they instruct that they do not want the middle of the road package, well, you don’t need to provide it. The middle package could have things like a BDBN, if the client doesn’t want to pay extra for it, they can do it themselves. If they don’t want to pay for you to step them through the Advance Care Directive and Letter of Wishes, well they can do it themselves. Keep your simple package as just that, a simple package.
This approach also naturally encourages marketing about the full retirement package, the full kit and caboodle for the second half of retirement. This marketing points to both of your higher packages, and addresses an issue that your clients have already seen on the news or discussed at a BBQ.
DIFFERENTIATE YOURSELF
Most of the marketing from other firms at the moment is focused on needing more than a simple Will, as it should be. This is an important thing that we need to keep preaching. However, you would be different if your marketing focused on doing more than appointing an Attorney and a Guardian. You would be different if your blogs and emailing marketing included a focus on Advance Care Directives, Letters of Wishes (one for death, one for life) and how superannuation and total and permanent disability insurance might become part of the plan if there is a sudden injury.
While people need to realise that they don’t want a simple Will, your potential clients also need to learn why they should do so much more than appoint an Attorney. Your marketing and your pricing will point them towards that package that encourages them to do just that. This is a situation where clarity is kind, clarity around your price is kind because it points them to the package that is for them. This is not just a sales pitch, this is about walking the walk, and using your Estate Planning packages to focus on something that is very important. Every week we see another article about aged care, how people are being treated, and whether or not older people still get to make choices as they age. You aren’t just creating a pricing strategy, you are responding to a real issue.
ONLINE TRAINING
Three tiered pricing can be a really effective strategy for focusing your client’s attention where you want it. I have prepared an online course that focuses on why you would use it in Estate Planning, and how you would use it. We step through the reasons that we want to center the second half of retirement as part of the Estate Plan, and how we are using our three tiered pricing to not only centre that, but to also be really clear with our clients from the beginning. There is written content to work through, but if you prefer there is also a video recording.
Set of precedents
I am also working on a set of precedents dealing with a three tiered pricing system, including costs disclosure and easy to use checklists. If you want to find out more about those as they are developed, and get a discounted offer when they are ready, then you could join the waiting list.
