Tag Archives: Business model

Value based fees – fantasy or future?

Let’s say that you can provide a service to a customer that will save him $1.000.000  per year. What price would be reasonable for this kind of service? $50.000, $250.000 or maybe $500.000? What if your investment for providing this service only cost you about $5000 or let’s say 2 weeks of work. 2 weeks work translates to an hourly rate between $625 – $6250. This is a situation a consultant can come across quite frequently with a traditional hourly based business model. You could think that a price of $6250 per hour is way too high but should we not solve our customers problems as fast as possible? Read more »