Value is all a matter of perspective

 

november december 2011 017I was bought a gift of a V8 super car driving experience. $300 for 6 laps at Eastern Creek, plus all the briefing, suiting up and obligatory photo opportunity.

The actual drive lasted 8 minutes (give or take), not because I was that good. That’s what it takes in a V8. Is that good value? Depends. For me “yes”. For you “maybe”.

But they were sold out, so obviously there are plenty of takers to spend $40 a minute.

 

It’s like the old story of the ship’s repair person who billed $10,000 for an hour’s work to fix a cruise liner in a foreign port. When asked to break down the bill, he said:

$100 for fixing spindle.

$9900 for knowing how to fix spindle

Value, real and perceived is everything. Agencies continue to come under pressure from clients and their procurement people to shave costs, whilst at the same time giving more service.

And these same clients are paying top money for advice from lawyers, accountants, investment bankers and management consultants. Agencies are put into a more transactional bucket by clients and are paid accordingly.

Instead of negotiating on the basis of time and head hours, agencies have to move the dial to value and that’s never a single conversation. It will happen gradually and it requires everyone servicing the client to understand this concept.

When is the best time to plant this “tree”? Years ago would be the answer. Then you would be harvesting the fruit right now. If not then, how about now? Start today.

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