Episode 51: Smarter Pricing for Financial Advisors

Behavioral economics may be the missing piece in how RIAs price and position their advice.

Etinosa Agbonlahor is a behavioral economist and CEO of Decision Alpha, where she applies behavioral economics to pricing, decision-making, product design, and growth. Her experience includes working with major banks in Australia and a large U.S. investment firm.

In this episode, Etinosa explores why RIAs and business owners often underprice their services, how clients perceive value, and why pricing requires both math and psychology. She also explains how anchoring, pricing options, client segmentation, and positioning can help advisors structure fees more effectively.

Key Takeaways:

● Underpricing Can Undermine Value: RIAs often price based on what feels fair to them rather than what their expertise is worth to clients.

● Pricing Is Both Art and Science: Sustainable pricing requires understanding margins and profitability while accounting for how clients make decisions.

● Give Clients Meaningful Choices: Offering structured pricing options gives prospects reference points and can make decisions easier than presenting one price or too many choices.

● Positioning Shapes Perceived Value: How and where an advisory service is presented can significantly influence what clients believe that service is worth.

● Use Anchoring Strategically: Advisors can establish relevant comparison points that help clients evaluate the value of their advice and pricing.

Connect with Etinosa:

Website: www.etinosaa.com