Fees. Charges. Costs. How much should someone charge for a service? Whatever the terminology used, the psychology around charging for a service is fascinating. Some service providers can charge without question. High costs from engaging certain service providers have become customary. A small service can take a large financial bite. A fact of life and accepted. What can you do?
We’re talking about some lawyers. Before any lawyers feel the need to defend themselves. We’re not quibbling about your fees. It’s like when the mechanic gets a car going in 2 minutes. The owner doesn’t get a discount because they’re not really paying for the time. They’re paying for the expertise. It’s a take it or leave it deal. They couldn’t do it themselves.
In contrast, consider the financial advice industry. Attacking the financial advice industry on fees has gone on for years. We can’t say without some good reasons. No need to recount the gory details. There was some outrageous behaviour. A segment of the industry painted a bullseye on the industry as a whole. Unfortunately, it has become a one size fits all issue. It has done damage.
Someone visiting a financial adviser for the first time may arrive with their expectations shaped by what they’ve seen or heard in the media. They know they need some advice, but they’re very dubious about it. They arrive with the mindset they may get ripped off. They’re not happy about it and they’re on the defensive. Not a great way to start a relationship.
It also means other service providers have the opportunity to position themselves as the first point of contact for matters an adviser may have historically dealt with. Without knowing any better, a client looking to avoid a potential rip off may find themselves paying even more to another professional for a routine task.
A post recently appeared on a financial advisory forum. A new client had visited an adviser for investment advice after receiving a TPD payout from superannuation. The client informed the adviser he’d been assisted in making the claim by a lawyer. The client received $180,000. The lawyer took $23,000. It was a straightforward claim.
Read the full Lawyers & Superannuation Insurance Claims post
This represents general information only. Before making any financial or investment decisions, I suggest you consult a financial planner to take into account your personal investment objectives, financial situation and individual needs. Don’t make financial or investment decisions on the basis of blog post or sourcing advice from internet forums, if you need advice on personal insurance I’d suggest visiting a financial adviser who can help with select your insurance policy or making an insurance claim.
