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Increase your rates by thinking like Picasso

Posted by Phil Voice on December 10, 2013 at 7:04am in Business

We've often talked on Landscape Juice about hourly rate versus price per job and how the latter is the most profitable.

Whilst I'm a great advocate of the essential of understanding what it costs to sell an hour of work, I am also a great believer in maximising the available selling potential of one's time.

Have a read of this post from Landscape Management: Tracking time vs. measuring value - http://landscapemanagement.net/2013/12/03/tracking-time-vs-measuring-value/.

There’s a tale about Pablo Picasso that begins with the artist sitting in a cafe, sketching a woman in his view. The picture took all but five minutes to craft, but he alleged to the woman it would cost her $2,000 to own.

While not charging for the minutes to do the drawing, he was charging for the years it took him to attain the knowledge to put the sketch to paper.

The Picasso story is a compelling one and one worth typing out and pinning to your noticeboard.

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Tags: chargeout, daily, estimate, hourly, picasso, price, quote, rates, versus
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  • Andrew Baker December 10, 2013 at 11:27pm

    I feel that pricing per job (and expecting to command a higher rate) is, in general, dangerous for us as we always aim to convert clients to a regular service. It's easy to put clients off (and get an expensive reputation) by charging a higher rate for apparent one off's which may just be the start of a regular maintenance plan. So we always quote the same day rates.

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