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Applying your $ effectively 💰

Writer: Brian SchoolcraftBrian Schoolcraft

Previously, we proposed three categories of “problem solving” that you might need to pay for:


Execution, Deliverables, and Strategy


How does what you need impact how you might expect to pay?

Here are a few thoughts.


If you’re buying Execution, you’ll probably end up paying by some sort of work unit

-Support tickets closed

-Drawings checked

-Hours worked

-etc.


If you’re buying a Deliverable, a fixed price quote often makes sense.

But be careful - far too often, fixed price “quotes” are actually estimates based on what is known today, and change orders ($$$) are coming.


Finally, if you’re buying Strategy, the value, and therefore the price, is a little more abstract.

You’ll often end up paying a one time flat fee for short engagements, or a recurring consult fee for longer term work. This often won’t be directly tied to tangible outputs, since you’re paying for access to an expert’s opinion - an opinion that should lead to tangible benefits. If it’s not, maybe you haven’t hired the right expert 🫤


Have you ever paid for something the wrong way? Did it work, or cause issues?


-Brian Schoolcraft


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