Posted On: 2005-11-29
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Hello, hello, hello. We're back once again. Lovely people out there. I'm back with the strong man to my left.
Dr. Andy to my right.
Yeah, Doctor. That's right.
You mother's proud, I'm sure.
And master Paul on my right.
Jesus Christ, would you guys let me get through the introduction one time nowadays?
Not Jesus Christ, he's master Paul.
I want you to know, Jesus Christ didn't have an education. Ok.
Can we just start again?
He learned a trade from his father and ran with it.
His father in heaven.
Hey, ok. So. We're going to talk about pricing. How do we know what we're worth? How do we know what to charge?
$5, $5, I love you long time.
You should ask for 10.
As an employer, how much is your employee worth?
I would have taken two.
As a consultant, how much do you charge? How much would you suspect a client should pay you?
Ok, so it's time for the pricing joke. Can you get through the pricing joke?
I don't think so.
You know the pricing joke, JC. You just told it.
Oh ok. Wait. Wait wait wait. Where do you want me to start?
In the beginning, like there was this horse.
No, no. Wrong pricing joke.
Let's start again.
Ok. There was a horse, all right? And this guy who was a very smart, skilled negotiator walked up to this kid.
Oh I know
And he says, you know, I'll give you $25 for that horse. And he says, the reason I'm going to do it, he just started negotiating the kid down, and blah blah blah, and finally got the kid down to like you know $23 for this horse. And the guy says, fine. So now he leaves. And he feels really bad. He goes man, I used my skills against that unskilled child, you know, I should come back and I should teach him a lesson. So he comes back and he says, you know son, I'm not going to pay any more than the $23 I promised, that's all you get. But, I'll tell you, you know, I'm a skilled negotiator and I probably would have paid, you know, 30 bucks for that horse. And the kid says, I'd have taken ten.
We all saw that one coming.
That's right. So what's a fair price?
At least it's been a lot of episodes since you tried to tell a joke. That's probably why our listeners,
At least that was a short one.
That's probably why our listener base has been growing.
Now it's going to decrease?
So, what is the story, the price is worth what somebody is willing to pay.
Yeah, let's say you're a new, a new consultant. You're on the street. You've got your shingle out, you're ready to do your business. You've got a couple clients. They're interested in your work because of your portfolio, your published stuff.
Because of your relationships
The consultants have portfolios?
How do you charge? How do you charge?
Whatever they're willing to pay.
How do you know what they're willing to pay?
How do you find that out?
What do you mean you ask?
You go, I want $100 an hour, and they like, whew......, wait, how does Mike do it? I can't whistle. Yeah.
I'll tell you how the government does it. The government looks at contractors and they say, ok, you show us your cost, you're allowed 30 to 50% depending upon what the project is.
Ok, if you're negotiating with the government,
We all know that people screw the government out of millions. It has nothing to do with cost.
The government doesn't know how to do it.
Then how do you do it?
Yeah, how do you. Wait. Yeah, Paul, your response was, is you ask them. Right?
So you say...