In your situation, which I have also run into with a client looking to improve their market influence, you offered after the fact to further compensate an individual based on the level of work that was performed. That, in and of itself, is a rare occurrence and I applaud you for taking that step. All too often people think of the consultant/analysts/worker as being responsible for establishing & maintaining the client/customer relationship. It is refreshing to see that there are still clients who value the relationship with their own providers as much as you do.

Congrats on your position, and thank you for the feedback. – Fred

However I only did it because he had first established the principles you highlighted above – quality, trust and understanding. I’m a great believer in encouraging the good guys. (And just to clarify, it was my money not ‘the company’s’ – I’m running a startup, but I’ve seen the long term value of investing in relationships)

Regarding McDonald’s, no, they don’t practice Value Pricing, despite the “Value” tag they place on certain menu items. For them, it is purely a cost+profit% model, just like my first consulting business where we initially charged by the hour (hence the comparison between McDonald’s and my first business).

I appreciate your feedback and look forward to more conversations.

Fred

The whole issue of hourly pricing is a question of the value you assign to your involvement. If getting paid by the hour is one’s chosen method then he is committing himself to the maximum number of dollars earned based on the hours he can generate billings at the chosen (or published) hourly rate — might as well be punching a clock

BTW: I suspect the comparison to McDonalds may ignore the principle… I assume that McDonald’s (to further its brand promise) looks for the lowest price they can charge above the cost of delivery. That’s not value pricing in my mind at all. In fact value pricing to me is about finding the highest price that the client is willing to pay and still feel like they got a great deal because of the value delivered. It is implicit that value pricing generates high margin above the cost of delivery… otherwise what’s the point?