Posted by: Marty Fahncke | July 9, 2007

What to pay for an expert or consultant…

Perhaps you’ve heard this story, or have told it yourself…

“A factory had to cease operations when a vital piece of machinery broke down. Try as they might, the firm’s own mechanics couldn’t get it working again. The factory owner called in an outside expert…a machinery consultant.

He looked the situation over, listened to the machine, checked some switches and gauges, then went to his tool box. He took a hammer, hit the machine lightly in a certain spot…and it immediately started running beautifully.

He then submitted a bill for $1,000, which made the factory owner figuratively hit the ceiling! After all, the consultant was only there for ten minutes.  He demanded an itemized bill.

The consultant took back the bill, wrote on it for a moment, then handed it back to the factory owner.

This is what it said:

Item #1 Hitting the machine… $10.00
Item #2 Knowing where to hit…$990.00
================
Total:                                      $1,000

I use this story quite a bit whenever pricing becomes an issue for my consulting company. 

It’s a great way to address questions about price, time spent on a project, etc., and keep the conversation focused on paying for what is important….RESULTS.

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