You Billed Me….. WHAT?

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billing

As a consultant have you ever felt on a high wire regarding how to bill for your services with confidence?

Consider the story of a Consultant brought into a billion-dollar atomic power plant to solve a technical problem that was reducing the efficiency of the entire operation.  The plant’s engineers had been unsuccessful in identifying the source of the problem, let alone finding a solution.

After two days of diligently studying the hundreds of dials and gauges in the control room, the consultant climbed a ladder and marked a large black “X” on one of the gauges.  Sure enough, when this apparatus had been replaced, the plant returned to full capacity.

A few days later, the plant supervisor received an invoice from the consultant for $10,000 for “Services Rendered”.  The Plant Supervisor questioned the size of the bill, pointing out that it seemed excessive based on the worked performed – in his words, “standing around for a couple of days and then marking a black “X” on a gauge”.    Sound familiar?  You most likely want to explode right now.

Now back to our Consultant.  The Consultant then resent the invoice broke down this way:

For Placing the “X” on a gauge:        $        1

For KNOWING which gauge:            $ 9,999

Total:                                                 $10,000

This principle applies in all areas of business.  Clarity in effectively communicating YOUR VALUE to your clients.

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