Paying for the Solution – Not the Time It Takes

Dexter is a management consultant with an accounting firm. He has been advising the owners, directors, and senior managers of various companies long enough that he typically begins formulating solutions to their problems during the initial stage of discovering the problem. Understanding that each situation is unique, Dexter still pays close attention throughout the discovery stage.

Because he always brings to bear his years of experience, and because he has the expertise to “sometimes come up with a $10,000 solution in 10 minutes,” Dexter eschews the billable hour as unfair. Rather, his firm charges fixed fees, established up-front based on the client’s gauge of importance, and includes a satisfaction guarantee. When the scope of any project changes while underway, the fee is adjusted on the same basis – all in writing.

Q1 Would it still be more fair for Dexter’s firm to charge according to his time spent, with his rate per hour linked to his seniority?

Q2 Should any other professions that apply experience and expertise to solve client problems also consider value-based fees, fixed up-front with a satisfaction guarantee, and accommodate any changes in scope by adjusting the fees?

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca