Most independent practices have absorbed a 15% increase in overheads over the last 3 years without passing costs to clients. Use this tool to benchmark your average household revenue against the commercial minimum required to sustain a modern practice.
Critical Underpricing: Your average revenue is below £1,500 per household. It is mathematically impossible to provide compliant, comprehensive financial planning at this price point while maintaining a sustainable profit margin. You must implement a minimum flat fee or offboard a significant portion of your book.
Marginal Pricing: Your pricing is hovering near the breakeven point. You are highly vulnerable to inflation and regulatory cost increases. Consider standardizing your service tiers to reduce delivery time.
Sustainable Pricing: Your firm commands a healthy premium. Focus on operational efficiency to maximize the EBITDA margin falling out of this revenue.
Warning: You have households per adviser. The industry consensus for comprehensive planning capacity is capped at 120. You are likely compromising service quality or overworking staff.