Monday, February 26, 2024

When time does not equal money – expert services

 

[spine*]

There is this moment of complete shock. A computer technician comes in and solves a vexing problem in five minutes and then charges for a full hour. There is something unjust and absurd, even criminal, about the lack of proportionality between the time spent on the task and the amount you must pay. Yet, if carefully considered, professionals earn their rates if one considers that the years of education and experience it requires to efficiently solve a problem the first time. This assessment impacts not only our reaction when paying for services but, just as importantly, our conscience as professionals when demanding such rates. A qualified service provider not only should demand professional rates but do so with confidence.

It used to bother me that my accountant charged me so much money for preparing my simple tax return when I know that “all” he did was enter the numbers of the various factors into a computer program, press calculate, save the result and send me the bill. However, after considering how long it would take me identify those factors, find and understand a relevant computer application and enter the numbers, I realized that the accountant was saving significant toil and suffering, not to mention further explanations to the IRS. I was not paying for the hour or so of effort by the accountant but instead for the expertise and experience that allowed him to quickly complete the task. In one specific case, I did find the actual amount of the bill obscene and switch to less expensive accountant but I am happy with my choice to pay a professional for the service.

To turn the coin over, if you are a professional with several years’ experience, you probably have all the tools and knowledge required to complete most standard tasks in your field within a minimum time. In practice, the actual work required is far less relevant than how long it would take the customer or an untrained employee to complete the same task at the same level. If you are significantly more efficient or, even better, acting as the client’s “savior” in a given situation, your rate, even if it reflects work time far higher than actually invested, saves the customer meaningful time and effort. Thus, you can justify a respectable rate. So, ideally, service providers should consider the value of the service received by the customer.

As a legal translator, I provide many standard forms but charge by certificate, not time. To illustrate, many authorities require proof of address, generally a utility bill of some kind. With some 20 years’ experience and a large database, this task is not time-consuming but merely requires great attention to details, especially numbers. The customer is not paying for my actual time but instead for my knowledge and skill. As much of my work involves Hebrew texts, many of my customers could not do this themselves nor consider it worthwhile to keep an expert on the payroll. So, like the computer technician in the introduction, they pay for my expertise.

Thus, when considering whether the price of a professional is justified, consider the years it requires to reach that level of expertise and how much time/effort it takes an unskilled person to attain a similar result. Likewise, when setting professional rates, freelancers should also consider the value they are creating as perceived by the customer. Of course, the exact rate depends on the context and is far from exact. Still, the knowledge that a various task requires expertise attained over years should help provide some backbone to accepting and demanding proper professional rates.




* Picture captions help the blind fully access the Internet.

Picture credit

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