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#436: Consulting Humor: Explain Your Fees

Posted By Mark Haas CMC FIMC, Monday, November 15, 2010
Updated: Monday, November 15, 2010
Since humor is based on pain, old and well worn jokes about consultants tap into some uncomfortable truths about how some clients perceive our services. We are well advised to pay attention to the implicit messages in this week's jokes (Yes, we'll do jokes all five days. Trust us, there are a lot more).
The dominant value of management consulting services is in diagnosis, not necessarily in implementation services.

A company had a boiler that was working intermittently. They tried everything they could do but nothing worked. Finally they called in a consulting engineer, who they knew to be expensive but the best in the business.

He arrived and set to work studying the boiler, checking connections, temperatures, and overall operations. He then stepped back, stroked his chin and after a few minutes, made a mark on the side of the boiler. He then picked up a sledge hammer and took a full swing and hit the mark.

The boiler gasped and sputtered, then started to work perfectly.

The consulting engineer then gave his bill to the client. The boss was shocked and said "I'm not paying $1000 for hitting a boiler with a sledge hammer." I need to see a detailed invoice.

The consultant's bill: "Hitting the boiler: $25. Knowing where to hit the boiler: $975." (This is an old joke; each time it is told, the prices go up)

Takeaway: When setting billing rates, explain to your client that much of what you are being compensated for is diagnosis. The 10-20-30 years of experience you bring drives to a solution that the client or consultant can then implement. Consultants get a bad rep when they try to diagnose without enough experience and then try to prescribe solution without enough skill.

See more at (or contribute to) IMC's Consulting Humor blog

Tags:  fees  proposals  sales 

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