“How much will it cost?” Time vs. Value

Why is it we always get asked “what’s your hourly or day rate?”

As far as we’ve worked out, it’s simply that most business people focus on time rather than value for money.

Plus it’s then easier for them to work out ‘how many hours they think it should take multiplied by the hourly rate’ in order to figure out the price.

But this isn’t the whole picture. Its simplicity makes it wrong as it doesn’t take in to consideration other important factors.

For example, some agencies are faster and more efficient at what they do – therefore, it’s not about how much time is spent but what is done in that time.

Similarly, some agencies are just better than others – fact. They have more experience, knowledge, talent and skills – therefore their time should be worth more, right?

We can see this play out in other worlds. Take music for example. Some of the best, most popular and most valuable pieces and performances took minutes to create. Other songs took hours, days, months even years to make only to disappear into obscurity.

So what if we’re both – what if, in our profession, faster and better? Is that worth more? Should the price reflect that? If so, then surely the hourly or day rate is less important and the focus is on the end result – the problem it solves.

There is greater value and less risk associated in working with people and agencies that are both efficient and high quality.

Of these 4, which agency would you prefer to work with?

So, the next time you ask how long will it take, we will simply answer with another question…

“Do you mean how long will it take to do this job, or how long did it take to get this good and efficient at helping you solve your problem?”

With great experience, knowledge and skills comes greater value and efficiency, and therefore higher prices but much less risk.

Choose wisely.