This article is not free. But how much is it worth? I spend some time thinking about this subject, writing some, read back. But what is the value of this article? That differs per individual. Will this article help you pass the time? Or are you in a quest for the ultimate definition of value? Does this article give you a valid idea that will make you millions? What is the value of this article?
Many of the training courses I have delivered over the years featured the term “value”. The discussion revolved around maximizing value and defining what value is. This was also an issue with the various consultancy assignments. What makes the service I provide worth a certain hourly rate? I know that I add value, the things I offer can make a situation better or at least inspire people to look at things or do things differently. But what justifies a certain amount (per hour, per day)?
Product versus Services
This is a bit easier with products. You can determine what the different parts cost and how much time it takes to assemble a product ready to be delivered. Add to this a profit margin and a dose of taxes and there is the value of the product. The value of a service (especially services) depends on the perception of value. How do you quantify that perception when people ask what your service costs? Difficult.
I often say jokingly that I really make impact only 5 minutes a day job but I have to be present there for 8 hours.
This remains a considerable struggle for the services sector. What justifies a certain rate? An hourly fee still seems to be the most accepted standard, but it can also be done differently.
What is our pricingmodel?
We ran into this issue when we decided to offer some of the materials and workshops that we have as online courses. A big step forward for the scalability of our work. We can reach a larger audience than if you offer a physical workshop.
Anyone can do the course at a time and pace that suits him or her. That’s a big step in value. In addition, you can offer consistent quality and you only have to make an effort to put the first version online. Notwithstanding maintenance and further development of the material.
The big question then is, what is it worth? What are people willing to pay for an online course? No idea…
Value for Value model
Actually very simple. You as a user are asked to share the value you get from our services and content. In most cases this means paying an amount. But alternative contributions are also welcome.
Where for many services a fixed amount is asked, determined by the supplier, we turn the tables. You determine the value yourself. If it has no value to you, you do not return anything.
In this way we place the responsibility on you to be critical of whether the service is actually valuable and to determine for yourself in what form, quantity and extent they share this value.
In this way we receive direct feedback on the value we deliver and in this way we can find a balance between the time we invest and how much it yields.