"Fee Based" Fees
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How can a client, regardless of how much you bleed them, not be worthy of service?
You get what you pay for.
If you want to stand in the line at Home Town Buffet, balance your plate and silverware in hand and pay $10.95 for your meal, don't expect the same quality of food or service that you would get at the Four Seasons. You get paper napkins instead of linen.
Life isn't fair. Not everyone is equal.....get over it.
[quote=babbling looney]
Life isn’t fair. Not everyone is equal…get over it.
[/quote]The service should be equal, and the advice should be equal too.
NASDY, You had a long illustrious management career. What was your advice to brokers on how they should handle accounts that were not profitable and were never going to be profitable in the future?
It's practically impossible to provide equal advice & service to everyone. For one, every investor is different; how do you give "equal advice?" With regards to service, every client is also different. Some want constant attention, others' (even some very large accounts) prefer the "I'll contact you if I need anything" approach. It goes w/out saying that all clients deserve the utmost in ethical conduct.
With regard to the original topic, fee vs. commission is usually defined as: fee- pay an annual % in lieu of commissions for transactions.
[quote=NASDY Newbie] [quote=babbling looney]
Life isn't fair. Not everyone is equal.....get over it.
[/quote]
The service should be equal, and the advice should be equal too.
[/quote]
Not true. Nothing has to be equal. There is no rule.
My time is valuable. My knowledge is valuable. If people don't value me by either respect or money (preferably both) then they don't get to have my time or knowledge.
People who pay more (or create more revenue for me) get better service. People who pay more get more advice. People who show me respect and appreciation even if they don't create the best revenue also get more of my attention. Notice I didn't say better advice, just more. Of course more is usually better.
People who are a--holes or know-it-all's get shown the door. I'm too old and life is too short to deal with fools and jerk offs.
Probably this all sounds crass. Too bad... that's the way it is in life. Not just at the brokerage, but at the car dealership, the doctor's office and the grocery store and any other place we happen to be. To think other wise is living in a fool's paradise.
You probably think we can play nicey nice with the terrorists too. ----have a gratuitous smiley.
[/quote] People who are a--holes or know-it-all's get shown the door. I'm too old and life is too short to deal with fools and jerk offs. [/quote]
Well said.
[quote=babbling looney]
The service should be equal, and the advice should be equal too.
[/quote]
Does there have to be a rule, what is wrong with just being decent, even if there is no rule?[quote=NASDY Newbie] [quote=babbling looney]
The service should be equal, and the advice should be equal too.
[/quote]
Does there have to be a rule, what is wrong with just being decent, even if there is no rule?
[/quote]
Hey jackass......you just misquoted Babs....you wrote the above comment. What, can't figure that out? I thought you had an IQ of something in the range of eleventy kabillion or so.
NASDY, I'm repeating my question because you either don't have an answer or chose to ignore it.
You had a long illustrious management career. What was your advice to brokers on how they should handle accounts that were not profitable and were never going to be profitable in the future?
[quote=anonymous]
NASDY, I’m repeating my question because you either don’t have an answer or chose to ignore it.
You had a long illustrious management career. What was your advice to brokers on how they should handle accounts that were not profitable and were never going to be profitable in the future?
[/quote]If you accept an individual as a client you owe that individual 100% of your efforts just as if they were the biggest account in your book.
If you are so self centered that you are not prepared to give every one of your clients the best you have either drop out of the business, or be more selective in who you choose to do business with.
Thankfully, the industry is far more selective about who deals with clients than who is in middle management. (As we all have seen, any fool can middle manage.)
[quote=NASDY Newbie] [quote=anonymous]
NASDY, I'm repeating my question because you either don't have an answer or chose to ignore it.
You had a long illustrious management career. What was your advice to brokers on how they should handle accounts that were not profitable and were never going to be profitable in the future?
[/quote]
If you accept an individual as a client you owe that individual 100% of your efforts just as if they were the biggest account in your book.
If you are so self centered that you are not prepared to give every one of your clients the best you have either drop out of the business, or be more selective in who you choose to do business with.
[/quote]
NASDY is right. If you choose to take someone on as a client you do owe that person your best. That gets tough when the client buys one bond from you or 100 shares of stock. As a rookie's career developes they will learn when to walk away from a prospect. Not everyone needs our service. It's not that we dislike people without money, we just can't help them. Still, there are times when a small account will have to be opened. A friend of a friend, a client's daughter, or neighbor. That person gets the full treatment, period!
Personally, I will open a small account if I see big money on the table. I'm not going to purposely open an account where I know it's the person's last 10 grand. Even if I stuck that money in a 5.75% front load mf, over the next five or ten years, with the service work involved, it's a money loser. And that's a tough lesson to learn.
[quote=NASDY Newbie]
[quote=babbling looney]
The service should be equal, and the advice should be equal too.
[/quote]
Does there have to be a rule, what is wrong with just being decent, even if there is no rule?[/quote]
And what standing do you have to speak on the matter of "being decent"?
[quote=NASDY Newbie]
[quote=anonymous]
NASDY, I’m repeating my question because you either don’t have an answer or chose to ignore it.
You had a long illustrious management career. What was your advice to brokers on how they should handle accounts that were not profitable and were never going to be profitable in the future?
[/quote]If you accept an individual as a client you owe that individual 100% of your efforts just as if they were the biggest account in your book.
If you are so self centered that you are not prepared to give every one of your clients the best you have either drop out of the business, or be more selective in who you choose to do business with.
[/quote]
I agree, within the limits of realism. Too, if one is thoughtful and disciplined, there are ways that one can do well by smaller clients and still simplify the work involved, so as to hopefully make the relationship justifiable from a profit standpoint. Some of the newer all-in-on asset allocation funds are a good example, IMHO.
[quote=NASDY Newbie]What a knee slapper–you’ve got a bunch of 'em, don’t ya?
[/quote]
You pretty much beg for it every time you open your arrogant mouth…
[quote=joedabrkr]
[quote=NASDY Newbie]What a knee slapper–you’ve got a bunch of 'em, don’t ya?
[/quote]
You pretty much beg for it every time you open your arrogant mouth…
[/quote]
In your world it is arrogant to suggest that if you accept a client you owe them 100% of your effort?
[quote=NASDY Newbie]
[quote=joedabrkr]
[quote=NASDY Newbie]What a knee slapper–you’ve got a bunch of 'em, don’t ya?
[/quote]
You pretty much beg for it every time you open your arrogant mouth…
[/quote]
In your world it is arrogant to suggest that if you accept a client you owe them 100% of your effort?
[/quote]
No it isn’t. In fact, I was starting to worry about you when I read that post. Have you been to the doctor to have your meds checked lately?