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| Bankers' Agenda |
Profitable Parleys
Constance Gustke
12/01/2003
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Does a hardball approach to fee negotiations result in poor service? Most say no. Private bankers know their business depends on referrals. "A bank can’t afford to have customers say they’ve gotten poor quality service," InvesTrust’s White notes. Word about poor service spreads quickly. Says Cooper: "People talk over cocktails at dinner." Five essential points to consider before you open negotiations:
| 1. | Will I gain negotiating
clout by consolidating
my accounts, thereby
increasing my assets
under management? | | 2. | Am I willing to change
private banks to secure
a better deal? | | 3. | Can I reduce my private banking fees by eliminating perqs and focusing
exclusively on advice and transactions? | | 4. | Do I understand
all the fees—including
investment exit and loan-prepayment fees—associated
with each transaction? | | 5. | How does my bank calculate
my fee and which of its
components—percentage of assets under
management, fees for transactions,
and fees for custody—can be negotiated? |
Illustration by
Gérard Dubois
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