SIICOACH is a blog with powerful tips and observations about personal success, high performance and entrepreneurship.

It aims to help you to

  • perform better
  • achieve more
  • get results faster
  • build a business
  • have a life

It's written by Siimon Reynolds, a highly successful high achievement expert and entrepreneur, who has co-founded two large enterprises, Photon Group and OMG. SIICOACH enables you to get Siimon’s latest thoughts and discoveries on productivity, high achievement and entrepreneurial success.

Paying for the Best

by Siimon 8. July 2010 11:02

I had an interesting, but painful experience recently.

I spent 6 months using a business consultant for a commercial issue I was involved in.

After spending over 100 grand, I still had no clear resolution in sight, or even clarity over the next steps to finalizing it.

Then I went to another one who charged vastly more, yet in 3 hours he had worked out how to finish it once and for all.

What a lesson.

Here I was thinking I was being cost efficient by going with somebody cheaper, but the opposite was actually the case.

When we look at the total cost (in time, effectiveness and money) the expensive guy turned out to be incredibly cheap.

And the less expensive consultant ended up being outrageously expensive.

In a free market economy, the best people almost always charge more, because they can.

Don't make my mistake. If you can possibly afford it, choose the best upfront and save yourself the angst and cost of dealing with the average performers.

Now here's the tricky bit.

Some of the more wily average performers charge a fortune too. So who you choose can't be purely based on price.

You need to check with other senior people working in their industry.

In most industries, the customer often has no idea who the elite performers are.

But people working in that industry always do.

Comments

7/9/2010 8:13:15 AM #

Well said, Siimon. I would add that 'elite' performers, especially in the business consulting space, will readily demonstrate their rainmaking skills on the spot - before you engage them!

Best, Robin Smile

PS: we met years ago in McMahon's Point when you were doing some amazing advertising creative for my colleague Annabelle Reid.

Robin Dickinson | Reply

7/10/2010 7:23:48 PM #

Nice to hear from you Robin.
And i agree.
Those who are sure of their skills are usually generous with them too. They have so much to give, they don't mind giving a bit away at the first meeting.

siimon reynolds | Reply

7/9/2010 11:19:28 AM #

I battled for ages with the idea of increasing my fees.
When I finally did, not one single client commented....& I gained a few more in the process.
I guess I'm worth it..... Oh no that sounds like a Loreal ad!

Amelia Hil | Reply

7/9/2010 9:27:16 PM #

In the words of Stella Artois....."reassuringly expensive".

Exception is some of the large consulting firms who charge high fee rates with a leveraged model, utilising junior, inexperienced consulting staff to do the work.

Suellen | Reply

7/10/2010 7:29:26 PM #

Yes, that's the worst combination: high fees and low competence, using a strong corporate brand to hide the fact that juniors are working on your job. I've fallen for that one before.

siimon reynolds | Reply

7/17/2010 7:17:12 PM #

I pay weekly for my Business Mentor - and I know I am only paying for about a quarter of what he is worth - as the amount of debt reduction and revenue increase in my businesses from meeting every fortnight - is about 200% more than the consulting fee.  Worth every cent to spend the money for the right guidance. ;)

Rob Morgan | Reply

8/6/2010 9:30:32 AM #

I even pay extra for my housekeeper who is superb!!  I don't like housekeeping - having it done for me means it crosses one chore from my list, one less thing to think about - invaluable in terms of spending more time with my kids, more time doing what I am actually good at and that means I can afford my housekeeper!  One productive hour can pay my housekeeper for a week or more.  We have a common term we use in our office - "false economy" - what we use when we try to save money the 'wrong' way.

Cheers!

AM Pearce | Reply

Add comment




  Country flag

biuquote
  • Comment
  • Preview
Loading