Value: How to think about it and how to calculate it

'You cannot comment on value without embedding price into the discussion'

clock • 10 min read

Brendan Llewellyn takes an in-depth look at 'value' in the advice space and spells out how to think about and calculate it

Value has always been a powerful theme in this and every other sector and now it's a central part of the Consumer Duty legislation. But what concerns me is the widely varied comment as to what value actually is, partly because the word is used in so many ways. The Oxford English Dictionary gives some help: "Value is…how much something is worth in money."  My O-Level economics was very clear on the matter - you find value by dividing benefit by price. But both definitions have one essential common factor - they mention price. You cannot comment on value without embedding price into ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

PA360: Clients' lack of understanding of advice value is 'concerning'

PA360: Clients' lack of understanding of advice value is 'concerning'

‘Anyone running a business needs to offer value to their clients’

Sahar Nazir
clock 25 April 2024 • 1 min read
PA360: Advice firms 'brush over' data integrity fundamentals

PA360: Advice firms 'brush over' data integrity fundamentals

‘Your business and your people are under attack constantly’

Isabel Baxter
clock 25 April 2024 • 1 min read
PA360: The need for a financial plan 'has never been higher'

PA360: The need for a financial plan 'has never been higher'

‘It needs to be done in a different and innovative way’

Isabel Baxter
clock 25 April 2024 • 2 min read