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Are you charging what you're worth or how long you take?

There’s revenue in that experience!

An attractive, well-dressed woman is walking along a French Boulevard in the Spring of 1907. Sitting under the shade of a large Maple tree, the woman sees an elderly bearded man painting onto a canvas. As she walked closer, she notices that the man is indeed Claude Monet.

Without hesitation, she asks if he would be kind enough to sketch a portrait of her. The French Impressionist agrees and sets to work with a pencil and sketchpad. Shortly after, he hands the young woman the portrait. Delighted, she reaches for her purse and asks “How much do I owe you Monsieur Monet” The artist responds politely “40,000 Francs”.

Astounded, she said, “Surely you jest! It took you less than 20 minutes!” To which Monet responds “No madam. It took me all my Life”

So what value do you place on your expertise? How many years have you spent honing a skill, building knowledge, paying for and learning from mistakes? Do your customers benefit from your ability to achieve a premium result in an increasingly quicker timeframe? For your increasing expertise, do they pay more – the same – or indeed, less?

If you are providing a ‘fee for service’ and you are basing your fee on how long you take, be sure that you are not in effect, working harder for the same income. That is, if you used to take an hour to complete a task and you charged customers $100, but you now can now do the same job in 45 minutes; are you charging them $75?!

Furthermore, when calculating how much to charge, are you considering how efficiently and effectively you can deliver outstanding results? This sounds very much like a premium service. And isn’t it true that most folk expect to pay a premium for that? Less really can be more!

Yours in prosperity and fun

Jeff Austin
Business Coach, Bunbury

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