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Questioning the Billable Hour part 2: The Carpenter’s Invoice, A Parable about PricingQuestioning the Billable Hour is a three-part series leading many to conclude that price paid should reflect value provided, rather than time spent. The alternative proposed is value-based pricing, fixed up front (as part of the selling/buying process) backed by a satisfaction guarantee. Questioning the Billable Hour part 2: The Carpenter’s Invoice, A Parable about Pricing Winnipeg, Manitoba, 1975: A man owned a house with a squeaky dining room floor. He paced that floor listening intently for the location of the squeak. Each time he thought he found it, he would pull up the carpet and drive a nail into the floorboards. Each time, the squeak eluded him. Eventually, he called in a carpenter. The carpenter paced the floor, pulled up the carpet, and drove a single nail into the floor. The squeak disappeared. The carpenter billed the man $50. The invoice said, “Driving one nail: $3. Knowing where to drive the nail: $47.” Having experienced how the problem had already caused him more than $50 worth of trouble, the man happily paid right away. - Glenn R. Harrington Article Tags: Billable Hour Part, Billable Hour, Hour Part, Carpenter’s Invoice,, Parable About Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHORGlenn Harrington is the Principal Consultant of Articulate Consultants Inc. Since 1996 he has specialized in consulting on authentic key messages as the basis for effective marketing, brand management, and client loyalty. His work frequently crosses over into management consulting where the matter of billing practices often arises as an Articulate value-add. 
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