You walk into a dentist’s clinic in extreme pain. 🏥
They give you two options:
One – We’ll make your pain go away in 5 mins. The fee: $500
Two – We’ll take 2 hours, which means you stay in pain for that long. But you pay only $100
If you’re in extreme pain, does the pricing seem fair?
If you don’t like being in extreme pain, then surely you must agree the pricing is fair.
Because the faster someone is able to make your pain go away, the more valuable their service is to you.
This rationale seems logical when seen in a medical context. It should be rational in any service-oriented business situation.
But in consulting, it’s not.
In consulting, buyers and sellers are mostly used to buying and selling services by the hour.
So consultants are incentivized to take as long as they like to solve the client’s problem.
The longer they take, the more they make.
It’s not a straightforward problem to solve (see video).
So, consultants, pricing experts and professional service providers – how do we solve this?
Post your thoughts in the comment so we can all learn from each other 👇