Paying for Insight

I’m enjoying Seth Godin‘s latest book, Linchpin: Are You Indispensable?. In his chapter on “Becoming the Linchpin”, he has a great diagram on page 52, which I’ve reproduced here. His linchpin discussion is a good illustration of the variance between price and value. I always cringe when a client reacts negatively to my billing rate (which is low for the industry). If they say, “I wish I could bill my time at that rate,” I know they haven’t got it and may never “get it.” I want to ask them what rate they pay their mechanic or their accountant. It’s a question of the value contributed, not the price paid. This is the problem with people who try to do too much tweaking on the product of a good designer… they don’t understand that they’re paying for expertise and then negating its value. Perhaps they’d rather have an expert at minimum wage?