I recently had a discussion with my staff at Think Big Online about the fact; there is no value in them working longer hours.
…And there is no value in them working harder.
Ahhh… “I get it” you say. The value is in them working SMARTER!
There is not even any value in them turning up to work at all. NONE.
Now before you go and think Samuel’s a few clowns short of a circus, I want to share a simple principle that you can use to make more money in your business right now.
The Principle of Problems Equal Money and Value Based Pricing.
A year or so ago I was sitting around (no doubt coming up with an evil scheme to make the world better) and it hit me like a ton of bricks…
Now this might simple or absurd, but bare with me.
The idea that money never changes hands, without a problem being solved.
Think about it… Money never changes hands, without a problem being solved.
EXAMPLE 1: If your toilet is blocked you have a problem. Most people will be willing to pay a much higher call out fee on a weekend to have this fixed.
Now it took the plumber the same time to drive to your house and do whatever plumbers do.
Except, she charged you twice the price for the privilege, than if she had come on a weekday 8-4.
She was just sitting around drinking beer, bored stupid and watching football by herself with nothing better to do anyway.
…And I’m pretty sure her plumbing skills don’t magically get better on weekends.
Nor does she give better service or have a more awards or certificates to say she is a better plumber on weekends.
But yet so many businesses “think” that the client should give them money because they give good service or have a PHD in toilet unblocking.
So why are you willing to part with twice as much money?
I’ll tell you in a moment, but first…
EXAMPLE 2: Terry wakes up in the middle of the night with an agonizing toothache.
He gets up and takes some painkillers, but they don’t have any effect.
By the morning he is in so much pain that he now has a migraine and his vision is blurry.
Luckily he manages to get a spot at the dentist first thing.
The dentist takes one look and says, “bad news, it’s rotten and we will have to pull it out”.
Terry says, “That’s fine just get it out”. “How much will it cost?” to which the dentist replies $900.
Terry thinks that’s a little high, but doesn’t care because he is still in agony.
Terry asks, “How long will it take?” and the dentist replies “oh, about 5-6 minutes”.
Now Terry is thinking, damn that is expensive (because he is looking at time as being the value) and says “that’s a lot of money for 6 minutes work don’t you think”, the dentist replies “I can take 2 hours, if it’s time you are worried about”.
So why are you and Terry willing to part with more money for the same thing?
Because you have a bigger problem. That’s it.
The bigger the problem, the more money people are willing to pay to have it solved.
Now back to the idea that “money never changes hands, without a problem being solved. “
Some people might say “what about charities? People give to charities all the time.” Now the obvious answer here is the fact “most” charities help to solve problems (or at least put a band aid on them, but that’s for another rant).
The hidden problems that are being solved are more to do with the person donating’s level of fulfillment and sense of contribution.
Now I’m not going into it in depth here, but if someone “feels” better about himself or herself by being able to donate, then the charity has just solved a problem for them.
Having good service or lots of fancy certificates with your name in gold embossed letters is nice for the client “IF” the have a problem.
If you are not solving a problem for them then they will never come to you to be able to experience your good service or admire your gold embossed certificates.
I could go on with example after example of shit that business people do that ADDS NO VALUE and this would be over 100 pages long.
Yes I could get my point across in 73 other ways and tell you dozens of stories, but would I be adding value to you?
I learnt this from reading a book on time effectiveness, which just said the same thing over and over for 14 chapters. Great use of my time…
So in conclusion and just in case you missed it.
There is no value in anything you do in business UNLESS it is directly solving a problem for someone else.
The MORE or BIGGER problems you can solve, the more you will make the world a better place AND the more money you will make.
As my good friend and mentor Benjamin J Harvey says, “think in problems”.
Leave your comments below about how you add value.