Fee Model Calculator

Now let's talk about your financial targets

This will form the basis on which we create your pricing model. So, it's best not to underestimate here.

Total expenses from last year

Do you foresee these changing greatly next year?

By what % do you expect your expenses to grow or fall next year

Total Employment costs

Total non-employment costs

Target profit margin for the coming year?

TARGET REVENUE FOR THE COMING YEAR

Don't worry if this isn't your actual number, though it's what we'll use to work out the pricing model

Your Hourly Rates

This is what you need to charge on average per hour of client-related work to hit profit targets

	Employee charge	Overheads	CHARGE OUT RATE (including profit, not including GST)
Advisers	{{ getEmployeeCharge('adviser') }}	{{ getOverheads() }}	{{ getChargeOutRate('adviser') }}
Paraplanners	{{ getEmployeeCharge('paraplanner') }}	{{ getOverheads() }}	{{ getChargeOutRate('paraplanner') }}
Client Service Offers	{{ getEmployeeCharge('administration_staff') }}	{{ getOverheads() }}	{{ getChargeOutRate('administration_staff') }}

Your Standard Advice process

Imagine the process you'd take a fairly standard holistic client through. Don't worry too much about variations in strategy at this stage. We'll cover that later. Instead, consider

	Advice Providers time (mins)	Advice Producers	Admin	Other costs		Notes
{{ advice.label }}							View Note Add Note

TOTAL mins	{{ getServiceTotalMinutes('standard_advice', 'time') }}	{{ getServiceTotalMinutes('standard_advice', 'producers') }}	{{ getServiceTotalMinutes('standard_advice', 'admin') }}			{{ getAllServiceTotalMinutes('standard_advice') }}
TOTAL hours	{{ getServiceTotalHours('standard_advice', 'time') }}	{{ getServiceTotalHours('standard_advice', 'producers') }}	{{ getServiceTotalHours('standard_advice', 'admin') }}			{{ getAllServiceTotalHours('standard_advice') }}
TOTAL cost	{{ getServiceTotalCosts('standard_advice', 'time') }}	{{ getServiceTotalCosts('standard_advice', 'producers') }}	{{ getServiceTotalCosts('standard_advice', 'admin') }}	{{ getServiceTotalOtherCosts('standard_advice') }}	{{ totalNotIncludeGST('standard_advice') }}	Not including GST

Your Transactional Advice process

Now consider a client that is coming to you for advice on one or two simple areas. Your aim in this process is to solve their problem as efficiently as possible.

	Advice Providers time (mins)	Advice Producers	Admin	Other costs		Notes
{{ advice.label }}							View Note Add Note

TOTAL mins	{{ getServiceTotalMinutes('transactional_advice', 'time') }}	{{ getServiceTotalMinutes('transactional_advice', 'producers') }}	{{ getServiceTotalMinutes('transactional_advice', 'admin') }}			{{ getAllServiceTotalMinutes('transactional_advice') }}
TOTAL hours	{{ getServiceTotalHours('transactional_advice', 'time') }}	{{ getServiceTotalHours('transactional_advice', 'producers') }}	{{ getServiceTotalHours('transactional_advice', 'admin') }}			{{ getAllServiceTotalHours('transactional_advice') }}
TOTAL cost	{{ getServiceTotalCosts('transactional_advice', 'time') }}	{{ getServiceTotalCosts('transactional_advice', 'producers') }}	{{ getServiceTotalCosts('transactional_advice', 'admin') }}	{{ getServiceTotalOtherCosts('transactional_advice') }}	{{ totalNotIncludeGST('transactional_advice') }}	Not including GST

Strategy Variations

Now we've considered your core processes, we now need to think about variations. Not all clients will have the same issues, so it's important we consider those differences

Is this an area you look at?	Strategic Elements	Advice Providers time (mins)	Advice Producers	Admin	Other costs	Additional fees (Not incl. GST)	Notes
						{{ getAddFeeNoGST(strategy) }}	View Note Add Note

1-to-1 Services

Let's start with the components of an ongoing service offer that relate to your 1-to-1 engagement of your clients. Consider the amount of time taken over the course of the

Is this something you'd like to consider for your own offer?	1-to 1 Service offerings	Advice Providers time (mins)	Advice Producers	Admin	Other costs	Service fee (not incl. GST)	Notes
						{{ getServiceFeeNoGST(service) }}	View Note Add Note

1-to-Many Services

Now let's factor in those elements of your service offer that you deliver to a number of clients at the same time.

Is this something you'd like to consider for your own offer?	1-to-many Service offerings	Advice Providers time (mins)	Advice Producers	Admin	Other costs	People	Cost per person (not incl GST)	Notes
							{{ getServiceFeeNoGST(service) }}	View Note Add Note

Strategy Management

Just as with engaging new clients, differences in strategies will impact the way your service clients. So, it's time to have a think about how much additional time during the year would be taken up in looking after a client with each of the following strategies.

Is this an area you look at?	Strategic Elements	Advice Providers time (mins)	Advice Producers	Admin	Other costs	Additional fees (Not incl. GST)	Notes
						{{ getAddFeeNoGST(strategy) }}	View Note Add Note

Defining your service offerings

Now it's time to decide what you want to have in each of your service offerings. Go through the list and decide how many times per year you'd like to include in each offer. The numbers will update as you go, so you can consider the interplay between all of the offerings

Give each service a name
Running total	{{ getTotalServiceOffering('service_' + ($index + 1)) }}

{{ service.label }}

{{ service.label }}

Get Your Result :

Fee Schedule

Now you've been through the process and defined your minimum fees for both your initial engagement and ongoing fees. It works like this:

For Engagement fees

Then add to this base fee any adjustments that may need to be made based on the strategy requirements of the client

For Ongoing Fees

start by identifying the service package most appropriate to the client. Then add to this base fee any adjustments that may need to be made based on the strategic areas you're managing on behalf of the client during the yeer

Finally, remember these are just your minumums. You will need to make a decision of the value of the advice you're providing when setting a fee. However, these do give you the guidance of knowing the dollar point at which you're pricing model is adhering to profit targets, regardless of the fee mechanism (e.g. asset based, fee for service, performance fee) you're employing.

Engagement fee schedule

Your minimum fees for engaging new clients is:

For holistic advice (inclusive of GST)

For transactional advice (inclusive of GST)

Strategic advice (to be added to the minimums above, inclusive of GST)

Ongoing fee schedule

Your minimum fees for each service package (incl of GST) are as follows

Ongoing strategy management (to be added to the minimums above, inclusive of GST)