A Tangible Insight
When we buy a car, we have something tangible—something we can touch, see, and feel. For many of us, our work isn’t about producing physical objects. Instead, it’s about delivering solutions to problems—an inherently intangible offering that can be difficult to articulate.
How do we communicate the value of what we bring to the table when it’s not something you can hold in your hands?
Sometimes, solutions are created for problems that don’t even exist. Financial services, for example, are filled with innovative ideas that never took off. I’ve developed a few of those myself. Take unit-linked annuities, for instance—an innovative concept that didn’t resonate with clients because it didn’t meet a real need.
The Journey: Shifting Perspectives on Cost and Value
Over the past few months, I’ve encountered the argument that cost equals value. For example, many champion index funds because they are cheaper and backed by academic research as one of the best investment options. However, focusing solely on cost misses the point.
Clients don’t typically seek financial advice because they want the cheapest option. They come with a specific challenge or need, searching for a solution they can’t resolve independently.
Consider the difference between direct platforms and financial advice. Direct platforms are like supermarkets—you know what you need, find the cheapest price, and buy it. The responsibility for making the right purchase lies entirely with you. If you choose the wrong ingredients, the blame is yours.
Financial advice is the opposite. It’s about understanding someone’s unique situation and providing tailored solutions. Whether managing a pension or crafting a complex retirement income plan, cost becomes secondary to solving the problem.
A Solution-Driven Approach
LinkedIn and other platforms often prioritise cost as the defining element of value. But cost isn’t the priority for most people—finding someone who listens, understands, and builds trust. The real value lies in the relationship and whether the solutions match the client’s needs.
This mirrors my own experience starting my business. Initially, I felt pressure to define precisely what I offered. Over time, I realised the more important task was to understand the companies I worked with—their challenges, pressures, and goals—and then craft solutions.
Sometimes, the solution wasn’t something I could provide directly, but I could at least point them in the right direction. The key was always the same: listen, understand, and build trust. Clients weren’t coming to me for a predefined solution; they wanted collaboration to identify and resolve their concerns.
Conclusion: Value Beyond Cost
Cost is a significant factor in direct, transactional decisions. You know what you want and find the cheapest way to get it. But financial planning is entirely different.
Financial planning is solution-driven and relationship-focused. It’s about partnering with clients to navigate their challenges and deliver tailored solutions that bring peace of mind, clarity, and confidence in their financial future.
When trust and expertise take precedence, cost becomes a secondary consideration, making room for real, lasting value.
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