Questioning the Billable Hour part 1: The Sketch Artist, A Parable about Pricing
Posted: Monday, November 23, 2009
by Glenn Harrington
Articulate Consultants Inc.
Paris, France, 1948: A young woman strolls along a downtown street and notices a man busily sketching a bowl of fruit. She stops. "Do you sketch portraits?" she asks the man. "Yes, I do," he replies, not looking up from the paper.
"Will you sketch a portrait of me, for me to take to my father? I am on my way to him now."
Three minutes later, the man presents a portrait to the young woman.
"It's very good," she says, not noticing the signature: Picasso. "How much do I owe you?" He replies, "Three thousand francs."
"Three thousand!" she exclaims. "But it only took you three minutes!"
Looking into her eyes, the artist retorts, "No. It took me all of my life."
The final line in this story: "No, it took me all of my life," is the perfect direct response to any suggestion that the amount of time taken to perform a task is a good gauge of the value provided.
Though a few readers might conclude that the fame of the artist determines his billing rate at 1,000 francs per minute, this is not the point.
Rather, a very good portrait drawn quickly can be worth a lot of money. If you question the price based on the short time spent, then you ought to consider that developing the talent and expertise that enable a very good portrait drawn quickly takes a much longer time than the time spent performing the task.
This shifts focus from time spent performing to value provided in the result of the performance.
When services are performed that depend on talent and expertise, the time spent performing is only an arbitrary gauge of the value provided. What's it worth to you to have a talented expert fulfill a need promptly?
Though a few readers might conclude that the fame of the artist determines his billing rate at 1,000 francs per minute, this is not the point.
Rather, a very good portrait drawn quickly can be worth a lot of money. If you question the price based on the short time spent, then you ought to consider that developing the talent and expertise that enable a very good portrait drawn quickly takes a much longer time than the time spent performing the task.
This shifts focus from time spent performing to value provided in the result of the performance.
When services are performed that depend on talent and expertise, the time spent performing is only an arbitrary gauge of the value provided. What's it worth to you to have a talented expert fulfill a need promptly?
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