Choice. It is the one commodity that consumers value above all else. Companies that have embraced this one simple fact have flourished financially because they have given the consumer what they want.

In the area of financial services choice can be essentially broken down into two distinct categories - the DIY Service Offering and the Full Service Offering. Each attracts a unique group of Investors with their own specific needs.

The overriding principal separating the two service offerings is cost. Those wanting a Full Service Offering typically delegate the management of their Investment Portfolio to a professional. In doing so they are more than comfortable paying the additional cost that this premium service demands.

Alternatively the DIY Service Offering is just that. It involves allowing the Investor to manage and choose their own investments. The DIY Service Offering needs to be cheap (without sacrificing service quality) or at least cheaper than the Full Service Offering. Otherwise it is pointless differentiating between the two and the Investor would be better off simply choosing the premium offering.

No one understands this principal better than the Discount Broker. The Discount Broker has a simple choice value proposition. DIY Investors who execute their own share trades online pay a rock bottom price to do so. Say $20 a trade. And Discount Brokers are more than aware that a DIY Service Offering is all their clients want. There clients are not after bells and whistles which they perceive as unnecessary and adding a cost layer that they are simply not prepared to pay.

Clients who want more than just a DIY Service Offering typically bypass the Discount Broker and choose a Full Service Broker or Financial Planner to manage their Investments. Of course they pay considerably more for the privilege. But this is the Investors choice based on what they believe offers the best value for them.

In the area of DIY Super we have a distinct problem. Because whilst there is a definite divide in terms of a DIY Service Offering and a Full Service Offering there is no a major distinction when it comes to cost.

For example assume you have a $250,000 superannuation portfolio. You hate the idea of managing your super yourself so you appoint a Financial Planner or Full Service Share Broker to look after your portfolio. These companies will choose the particular Super Investments for you, recommend strategies and arrange for the preparation of all relevant paperwork. All at a premium cost usually around 1% of your portfolio value. On a $250,000 Super Investment this equates to around $2,500 per year.

The alternative DIY Service Offering is one where the Investor chooses their own Investments for their Superfund typically using a DIY Superfund. These Investors bypass Financial Planners and Full Service Share Brokers and attend to all the financial requirements for their Fund themselves. All except the annual compliance requirements (ie financial statements, tax return and audit) which must be performed by a licensed Taxation Agent.

This is where the Basic Service Offering goes askew in the area of Superannuation. Because whilst an Investor attends to managing their Super themselves requiring only a basic reporting service at year end, the Taxation Agent typically charges them a premium price. The average fee of a typical $250,000 DIY Super portfolio is around $2,500.

Immediately we can see that there is a problem. That is whilst we have a divide in terms of a Full Service and DIY Service Offering, there is essentially minimal or no difference in terms of cost.

The Taxation Agent will simply pass this off with their typical answer of "Well that's what everyone else charges". Which may well be true but it doesn't solve the problem for the consumer who only wants a basic service at a basic price.

It is obvious that the corner Taxation Agent cannot fix this problem. Simply put they cannot afford to. They need the revenue and cannot afford to take the revenue drop. So their solution to the problem is to steadfastly defend their pricing policy and try to convince the Investor that they are getting something for their money that ultimately they are not. After all accounting is not rocket science and only reports what you already know before you even commence preparing the accounts.

Let's be honest for one moment. The only reason the DIY Super Investors use a Taxation Agent is because they are legally forced to. After all you cannot prepare your own DIY Super Tax Return or attend to your DIY Superfund's own audit. The Taxation Agent is essentially holding you financially hostage. Moving to another Taxation Agent rarely helps as they charge a cost for you to move and as the previous Taxation Agent righteously points out will invariably charge the same fee in any event.

ESUPERFUND believe that it's long overdue that the DIY Super sector caught up with the changing face of the DIY Investor and offered a DIY Service Offering at a basic price. We believe that you should not be paying a premium price for a premium service that you did not choose or want. After all the typical Investor is more than happy to choose their own Investments and have the tools in today's financial world to do so.

ESUPERFUND attends to all our clients DIY administration needs (including financial statements, tax returns and audit) for $699 per annum up to 80% below the average market fee. What's more we fix this cost irrespective of the size of your Fund or the number of transaction made. This is a basic price for the basic service demanded by our clients.

In today's world of add on sales, businesses are always keen to sell more to the consumer. Buying a meal at McDonalds is accompanied with the catchphrase "Would you like fries with that". The purpose of the question is simple. To sell you something you did not ask for. These add on sales add millions of additional dollars to the bottom line of these large organisations.

The problem in the DIY Super market is that Taxation Agents are essentially charging you a premium price for a premium service you did not ask for and are not receiving. This is akin to being charged for the fries without even getting them, let alone being asked if you like to order them.

ESUPERFUND solves this dichotomy by providing a premium service at a basic price if you will. We will advise our clients on more specific issues concerning their DIY Superfund including the benefits of establishing an allocated pension, consolidating non super investments into their DIY Superfund, implementing a salary sacrifice strategy and so on. And we do not charge for this premium advice. Maybe there is such a thing as a free lunch after all.