This week I was on the phone with a CPA talking about the difference of charging hourly or a flat fee arrangement. They were charging hourly.
His contention was sometimes…
His staff are spending less time on a client that they are charging a high fee.
His staff are spending more time on a client that they are charging a lesser fee.
The mentality of hourly versus flat fee is I think one of value and what your worth. I believe everyone should get paid the most for an hour for the value they’re demonstrating. But, a business should have the goal to demonstrate Ritz Carlton value and change Ritz Carlton prices.
When you have an hourly rate mentality you have a mentality of exchanging time for money. But, most people would gladly pay you for the value you provide not just the hour you provide to them.
One of my favorite stories to demonstrate value and price is this Pablo Picasso story.
The story goes…
Pablo Picasso was sitting at a café in Paris when a lady came up to him, excited shouting his name,
She went on to say, “Pablo I never thought I would meet you. It would mean the world to me if you would do my portrait.”
Pablo responded, “I’m here with my friends.”
The lady said, “I will pay you.”
Pablo begrudgingly drew the ladies portrait. He handed it to her.
She exclaimed, “Pablo this is fantastic. How much do I owe you?”
Pablo said, “5000 Francs.”
The lady shouted, “5000 Francs!? It only took you 5 minutes!?”
Pablo said, “I respectfully disagree. This has taken me a lifetime.”
Today, I helped a long-time friend get started on a second sales funnel for their business. We established a joint venture. In doing so I sent them over two e folders full of my books, marketing pieces, content, strategies, etc.
My first thought was.
This is like Pablo Picasso sending over a master piece.
When I sent the folders that contain a whole business in them…
Should I get paid for the time….
It took me to send it over to him?
It took me to develop it all over the years?
Should I split future profits indefinitely?
It’s up to you do you want to…
Trade time for money?
Trade immense value for money?
Stop worrying about time for money and start worrying about creating immense amount of value with you time!
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