Pricing: A lesson from Picasso


j0309190A women was strolling along a street in Paris when she spotted Picasso sketching at a sidewalk cafe. The women asked Picasso if he might sketch her, and charge accordingly. Picasso obliged. In just minutes, there she was: an original Picasso.

“And what do I owe you?” she asked.

“Five thousand francs,” he answered.

“But it only took you three minutes,” she politely reminded him.

“No,” Picasso said. “It took me all my life.”

Do you go for the same pricing as others or do you Value price?

As a consultant your pricing strategy should be based on the
value you bring to your client, not your cost (i,e, time and
materials) to deliver the services.

First things first – always establish your value proposition – at the end of this project, what will you deliver and how much is it worth? Then you can establish a price proposal with reasonable progress payments against certain deliverables or milestones.

One last thing based on my own experience as a consultant – don’t be afraid to ask for what you are worth. Most folks out on their own tend to underestimate their value and ask for too little. You aren’t an hourly employee, you are a knowledge worker who brings valuable experience and competence.

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