Using Discovery Calls to Determine Financial Planning Fees

Why the Discovery Call is Essential for Accurate Pricing

Unlike selling a standardized product, fee-only financial planning involves highly customized services. Your fee must reflect the scope of work, the intricacy of the client’s financial life, and the value you deliver over time. Relying on a fixed price without thorough investigation can lead to undercharging (eroding your profitability) or overcharging (damaging client trust and competitiveness).

The financial planning discovery call serves as your primary data-gathering phase. It allows you to:

• Assess Complexity: Identify factors like multiple income sources, complex investment portfolios, business ownership, significant real estate holdings, intricate estate planning needs, or multi-generational wealth considerations.
• Understand Goals & Motivations: What are their short-term and long-term objectives? Understanding their ‘why’ helps you frame the value of your services.
• Evaluate Client Fit: Determine if their needs align with your firm’s expertise and service model.
• Gauge Perceived Value: Listen for clues about how they value professional advice and what they expect from a planner. This helps frame your fee discussion.

Ultimately, a well-executed discovery call provides the insights necessary to transition from potentially leaving money on the table with simple hourly rates to implementing more profitable and value-aligned structures like flat fees, retainers, or tiered packages.

Key Information to Uncover During the Call

To effectively use the financial planning discovery call for pricing, you need a structured approach to information gathering. Focus on these critical areas:

• Current Financial Snapshot:
  • Income sources and stability
  • Assets (investment accounts, real estate, business equity)
  • Liabilities (mortgages, debts, loans)
  • Spending habits and budget (or lack thereof)
  • Insurance coverage
• Goals & Aspirations:
  • Retirement timeline and desired lifestyle
  • Education funding for children/grandchildren
  • Major purchases (home, second home, business)
  • Philanthropic goals
  • Estate planning objectives
• Complexity Factors:
  • Number and types of investment accounts
  • Diversification across asset classes
  • Tax situation (high income, self-employment, capital gains)
  • Ownership of complex assets (businesses, partnerships, trusts)
  • Family dynamics (blended families, special needs dependents)
  • Cross-border financial issues
• Previous Planning Experience:
  • Have they worked with a planner before? What did they like/dislike?
  • What financial software or tools do they currently use?
• Decision-Making Process:
  • Who is involved in financial decisions?
  • What is their timeline for engaging a planner?

Ask open-ended questions and actively listen. The nuances they share often reveal the true scope and complexity of the work required.

Translating Discovery Insights into Pricing Models

The information gathered during the financial planning discovery call directly informs which pricing model is most appropriate and what the fee should be within that model. Here’s how discovery insights align with common fee-only structures:

• Assets Under Management (AUM): While discovery reveals AUM value, complexity factors (number of accounts, types of assets, tax implications of managing them) should influence the effective rate or tier within your AUM structure. Higher complexity might justify a higher tier or additional fixed fees for specific services not covered by AUM.
• Flat Fee: Suitable for clients with defined needs and measurable complexity. Discovery helps scope the work (e.g., ‘Comprehensive Financial Plan’), estimate the hours/effort, and assess the value to the client. A flat fee might range from $2,500 for a basic plan to $10,000+ for a complex family situation with business interests. Complexity uncovered directly impacts where the fee falls within this range.
• Retainer Fee: Often an annual or quarterly fee for ongoing advice. Discovery helps determine the expected frequency and complexity of interactions and planning areas required. A retainer for a retired couple with moderate complexity might be $5,000/year, while a busy executive with stock options, rental properties, and college funding needs could be $10,000-$20,000+/year.
• Hourly Rate: Still applicable for specific, limited scope engagements (e.g., a one-time consultation on a specific issue). Discovery defines the scope and helps estimate required hours at your established hourly rate (e.g., $250-$500+ per hour depending on expertise and location).

For most firms in 2025, a hybrid or packaged approach often works best, combining elements like a setup fee (flat fee) followed by an ongoing retainer or AUM fee. The discovery call helps you determine the right combination and the specific price points within that structure.

Presenting Pricing: When and How

Deciding when to discuss pricing is a critical strategic choice based on your firm’s process and the client’s needs gleaned from the financial planning discovery call. Common approaches include:

1. During the Discovery Call (High Level): Suitable for firms with standardized service packages. You can introduce tiered options based on initial assessment. Use anchoring by presenting a slightly higher-priced option first to make the target option seem more reasonable.
2. Immediately After the Call (Custom Quote): Requires a quick turnaround after processing discovery information. Best for highly customized service models. You’ll present a single, tailored proposal with the specific fee.
3. In a Follow-Up Meeting (Recommended for Complexity): Allows time to fully analyze the discovery data, scope the work, and build a detailed proposal. This meeting is dedicated to presenting the proposed plan, outlining the value, and discussing the fee.

Regardless of when you present, focus on framing the fee around the value and outcomes for the client, not just the activities you perform. Connect the fee directly to the goals and complexities discussed during the discovery call. Instead of saying “We charge $X for planning,” say “Based on our conversation about your goal to retire comfortably by 60, our proposed fee of $Y covers the comprehensive analysis of your current assets, creation of a sustainable withdrawal strategy, and ongoing adjustments needed to achieve that specific outcome.”

To present complex fee structures clearly, especially when offering tiers or add-on services, consider using a modern tool. Static PDFs or spreadsheets can be confusing. Platforms like PricingLink (https://pricinglink.com) allow you to create interactive pricing pages where clients can see different options, select services, and understand exactly what is included and the corresponding fee in real-time. This enhances transparency and professionalism.

It’s important to note that PricingLink is specialized for the pricing presentation step. It is not a full proposal system with e-signatures or client portals. For comprehensive proposal software including e-signatures and client management features, you might explore tools like HoneyBook (https://www.honeybook.com) or PracticePanther (https://www.practicepanther.com), which are popular in the services sector. However, if your primary need is a dedicated, modern, interactive way to present configurable pricing options to clients and capture their selection, PricingLink’s focused approach offers a powerful and affordable solution.

Avoiding Common Pricing Pitfalls Post-Discovery

Even with a great financial planning discovery call, firms can stumble when it comes to finalizing pricing:

• Failing to Quantify Value: You understand the value, but can you articulate it in a way the client understands? Use examples from the discovery call.
• Not Accounting for Scope Creep: What happens if their situation changes or they need help with something outside the initial scope? Your fee agreement must address this.
• Fear of Stating Your Price: Be confident in your fee. It reflects your expertise and the value you provide.
• Lack of Transparency: Clearly itemize or explain what the fee includes, even in a flat fee or retainer model.
• Inflexible Presentation: Offering only one option can be off-putting. Presenting 2-3 clear options (tiered) based on complexity or service level, informed by discovery, allows the client to choose what fits best.
• Not Following Up Effectively: If you promise a proposal or follow-up meeting after the call, do it promptly.

By using the discovery call not just to screen clients but to build the foundation for your fee structure, you can avoid these issues, set appropriate expectations, and improve your closing rates and profitability.