Wednesday, October 13, 2010

It's about the value of the results, not how long the work takes...

Clients often ask how much ASVP Group charges for its services per hour or per day and seem confused when I tell them we do not and will not work that way.

We cannot, because it simply does not make sense. And furthermore, it's a conflict of interest. Why would any client agree to a system for charging them where it is in the supplier's interest to deliver as slowly as possible in order to rack up a bigger bill?

Many lawyers and accountants work this way still - although the practice is starting to earn some strong criticism from the likes of The Hon Wayne Martin, Chief Justice of Western Australia, who proposed a value-based pricing methodology in an address to what was reportedly a stunned legal audience. His Honor said that hourly billing is completely inappropriate and ought to be thrown out in favor of focusing on value.

As part of our engagement process, ASVP Group assesses and agrees with the client on the value inherent in a project before it commences.

Together we can then agree upon a value for our work, which will allow the client to obtain a solid return on its investment in our work on the project.

We can then get on with delivering the target project objectives as efficiently and effectively as possible, with full knowledge of what the final bill will be.

No surprises, fewer delays, and a strong ROI for the client.

What's not to like?

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