For every industry, the sellers have to deal with the Threat of Substitutes, which is the risk that an alternative product will take away all of the original product’s demand. A substitute is a good that can replace the original product in the customer’s consumption.
Substitutes for shoes include sandals, slippers, etc. Now shoes possess advantages over those substitutes, which means they can’t perfectly replace shoes in people’s buying habits. The Threat of Substitutes is thereby low.
Substitutes for soda include juice, water, etc. Soda can be perfectly replaced by those substitutes in people’s buying habits. The Threat of Substitutes is high.
|Rate||Assets Under Management|
|1.00%||Between $125,000 and $750,000|
|.85%||Between $750,000 and $1,250,000|
|.80%||Between $1,250,000 and $1,750,000|
|.75%||Between $1,750,000 and $2,500,000|
|.70%||Between $2,500,000 and $3,250,000|
|.65%||Between $3,250,000 and $4,250,000|
A single rate is applied to the entire account. So a person with a $750,000.01 account pays less than a person with a $750,000 account. I will waive personal tax return fees for accounts over $1 million. For accounts that are above $5,250,000, we’ll need to discuss a custom rate.
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Questions for the comments
Did my explanation make sense? Do you agree or disagree with what I said?