The Strategic Art of Pricing (a la Picasso)

Last week I had a colleague call me who was concerned about how to price a consulting project. He was trying to guesstimate hours and then map those to price. I told him to work backwards instead of forwards, explaining he should price by the value he brings to the project--which is a function of his unique talent and years of experience. Not the mere time he invests in it.

I then sent him Selling the Invisible by Harry Beckwith with the following passage highlighted, figuring it he wouldn't listen to me...perhaps he'd listen to Picasso:

A woman was strolling along a street in Paris when she spotted Picasso sketching at a sidewalk cafe. Not so thrilled that she could not be slightly presumptuous, the woman asked Picasso if he might sketch her, and charge accordingly. Picasso obliged. In just minutes, there she was: an original Picasso.

"And what do I owe you?" she asked. "Five thousand francs," he answered. "But it only took you three minutes," she politely reminded him. "No," Picasso said, "It took me all my life".

I rest my case. Charge by your talent, not your time.

Comments

[Lewis Green]

As the Guiness guys say, "Brilliant." I have added Picasso's quote to my signature. That is sure to scare more than a few potential clients away. That may be a good thing.

[Gavin Heaton]

CK ... love the Picasso quote!

I used to work with value based pricing models and it is a tricky subject. However, if you base your price on what you THINK your client can bear rather than basing it on the value you bring, then you will be underselling your skills and discounting the IP and experience that you bring. As Picasso said, it took a lifetime to develop those!

[CK]

Lewis & Gavin: Thanks for your feedback guys. Picasso's spot-on pricing model (takes an artist, eh?) impresses me so.

We need to remember just how much we're worth...and how much it takes to be able to deliver for our clients. That can be tough in negotiations when we're focused on the client--but, when it comes down to it we need to do right by ourselves in order to do right by others. Again, Picasso says it much better.

Lewis: Let me know how clients react to your sig line (ha!). It's really hard to argue with...but they'll likely still try :-).

[Jessica Torrant]

I've been on a quest for pricing info the last few days and this was a great discovery!! I've often thought the method of labor time X materials doesn't work because as you get better, you get faster at what you do best - why charge less at that point? LOVE that quote! :)

[CK]

Jessica: With fine, orginal art like yours that you put so much heart and soul into you should definitely charge for your talent.

And don't thank me...this one is owed to the brilliance of Picasso, which just goes to show that life SHOULD imitate art, eh?

Glad to see you here. Your artwork is stunning--wish I had that talent. Guess I'll admire from afar :-).