As he considers various strategies to maintain profitability — and even improve it — in the face of increasing competition and
client fee pressures, he realizes how alone he is.
Due to rate and
fee pressures in the market, firms need to be able to maintain their competitive position and profitability.
In the face of intense competition and
fee pressure what needs to be done to maintain profitability?
The greater the perceived (or real) complexity, the
less fee pressure typically exists.
All clients are under
such fee pressures that we sometimes forget experts are under that as well....
With the forthcoming rise in
tuition fees the pressure will be on institutions to show how their course can help students achieve a return on their investment by securing graduate jobs.
In response to
client fee pressures, law firms are considering how to deliver legal services more cost - effectively for the client, while retaining and improving profitability.
Examples of these trends may
include fee pressures from clients, changes in the industries the firm services, aggressive marketing by competitors, the firm's competitive advantages and disadvantages, mobility of partners among firms, and anticipated changes in the partnership as the result of retirement, withdrawal, etc..
The
downward fee pressure squeezes profit margins further, and even after several rounds of morale - sapping restructurings and redundancies, with economic growth in the core western markets slow at best, there's no end in sight.
One unnamed executive from a Canadian asset manager told Greenwich that «the industry is under
increasing fee pressure and as the needs of investors continue to evolve, fiduciary considerations, regulatory pressures, and the need to better manage the total cost of investment to the end investor all lead to an accelerated usage of equity ETFs.»
Turning to mergers across the broader European financial sector, Gilbert said that given the number of headwinds facing fund managers, such as the rise of passive, more regulation and
fee pressure, being bigger certainly helps.
I do feel that the fund industry will continue to feel
the fee pressure as flows continue to move in the direction of lower fee solutions, but I don't believe smart beta is the panacea many are hoping it will be.
These findings suggest that, although significant,
fee pressures and the relentless search for added value are not quite as important as the quality of advice and service delivery.
This rising tide of disputes, as well as
the fee pressure on law firms, make this an ideal time to launch Therium Nordic.»
However, in an environment where there is a lack of clarity around the DBAs and clients are putting lawyers under
fee pressure, we consider that CFAs will be around for little while longer.
Fee pressures may result in lawyers spending less time than they should on a matter, or delegating things that they should be doing to a clerk.
But real estate professionals are finding that there is no rest for the weary; they face an onslaught of change — new technologies,
fee pressures, competition from banks and other new business models, agency and other liability issues, and shifting markets — all exacerbated by a boom in Generation X buyers who question the ways things have always been done.