How much opportunity cost can your client afford to lose before they are in trouble?
Let’s discuss
Economists use the term opportunity cost to describe the value of what you could have chosen to do, anytime you make or are forced to make, an alternative decision.1 Multiply that dollar amount by thousands, and you can see how the conversation becomes a bit more serious.
Rarely do people ENJOY thinking about opportunity costs, especially when it comes to the choices they’ve already made. These discussions tend to be more emotionally driven.
So, is Opportunity Cost a Big Deal for your client?
Justin McMillian “I believe this simple concept is based on emotions rather than economics and is the key to building the required wealth to live your ideal life.” “However, to make the sacrifice of going without lunch and/or coffee you need to identify something you want more, because if you do not make the emotional commitment, then it is not going to happen,” Justin McMillian notes.
Humans are wired to dislike uncertainty. 2
Especially after the past year has left us navigating our way through some difficult financial terrain.
So, how do you address opportunity costs with your client?
Stress the importance that making no decision is itself a decision with cost and help them account for and anticipate strategic losses while keeping their larger financial picture in mind.
Emotionally connected customers not only generate greater value but in every interaction become more and more convinced that you have their best interest in mind. Become the Trusted Financial Expert.
Watch as Jeremy Shipp walks you through our “How Would You Like to Pay For It” tool, explaining the benefits of giving your clients access to their capital so that they end up in a better overall financial position.
1.https://www.washingtonpost.com/weather/2021/03/20/tornado-warning-opportunity-cost-facets/
2.https://www.psychologytoday.com/us/blog/the-right-mindset/202002/why-uncertainty-freaks-you-out