Value-Based Pricing And Charging As Much As The Market Will Bear - Kitces & Carl Ep 202

The gist

1. Kitces frames the debate with an advisor who values their time at $300 an hour when a wealthy client offers to pay $500.
2. Richards recalls saving a client about $54,000 in one year on a $12,000 fee, and says clients see such an event every three to four years.
3. Kitces says many advisors negotiate against themselves, adding fee breakpoints or caps for big clients before the client ever objects.
4. Richards treats the gap between what he could charge and what he does charge as goodwill that builds trust and long-term retention.
5. Kitces suggests a barbell approach where high-paying clients fund free or low-cost work, while Richards praises advisors who stopped growing once they had enough.