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.