After receiving a degree in business and taking three planning courses, I took time out to carefully create a solid financial plan (two years to be exact), and I launched my planning company. I did a lot of research on what other planners were charging in my city and found the average to be $5,000.00 for full-service planning. I quoted this cost on my new site with the understanding that it was a fair and reasonable price. I am surprised to find that my potential clients refused to pay this amount to me though they have no problem paying this fee to other planners.
What do you suggest I do?
Dear Not Fair:
I would first like to take a moment to congratulate you on launching your new company. It sounds as if you have really established a great foundation for your budding business.
Now, I must ask that you forgive my candor, but I have to ask you the obvious question: Why do you feel a client should pay you the same fee they are paying more experienced planners? In this business, there are a lot of men and women who call themselves planners, but, as in any business, you must prove yourself. In order to collect the larger sums, you must not only have a solid educational foundation, you also need a substantial amount of real world application.
I am sure that the planners you speak of, if we were to ask them, will tell you that it took them years before they started charging $5,000.00 as their fee. I appreciate your desire to charge what you feel you deserve, but I’d like to gently suggest you take a step back and take the time to work on your craft and prove yourself (something we all will need to do or have already done) before you demand a large fee. With each step forward, you will hone your skills and have the ability to raise your fee to one that both you and your clients find acceptable.
Dear readers, what advice do you have for Not Fair? Do you think she should charge the same fee as more experienced planners? Why or why not?
I look forward to reading your input.
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