If you could design the best compensation plan, would it be based on hard work, or output? I once heard a story about a locksmith. During his apprenticeship, he would take hours to work on a project. His customers would come and see him pour his heart and soul into his work. Quite a few would actually tip him for his services. As this same person got better at these tasks, not only did the tips stop, the customers were getting upset.
“How could you charge me $50? This only took you 10-minutes to fix”.
These same customers were the ones tipping when it took 4-hours. The perception was the locksmith was no longer working hard.
How do we value skill in our world? This locksmith became great at what he did. He could open any lock in minutes, that took other smith’s hours. Yet, customers felt like he was taking advantage of them.
When providing any product or service, it is important that the customer understands the underlying value. The years of apprenticeship, education, training, research & development, market testing … and so on. What the customer sees is their only reality. Keep that in mind before you show the finished product. Make sure you build value in your presentation. Sometimes that presentation is very brief, but remember you only have one chance to make a first impression.
If you have a specialty, secret sauce, special ingredient, or a decade of R&D behind your product, make sure you are marketing that information to your suspects and prospects. If you don’t communicate this properly, you will soon find out that “your hard work, was irrelevant”. Contact us to get more information!