The Value of Your Service

What if customers paid exactly what they thought the value was? Would your business prosper?

Have you ever given a tip to a street performer? Also known as buskers, street performers rely 100% on value to value transactions. They have barely two minutes to make an impression, and only get paid what people think they are worth. Sometimes that's a dollar, sometimes that's a dime, and usually "customers" keep on walking without paying anything at all.

Could your business survive using that model?

I've considered it as a model for my leadership training practice. Come to a workshop, or get some coaching and consulting and then pay me exactly what you think it was worth. What stops me? Not sure. Is it fear of the unknown monetary value? Is it fear that human nature might be to grab for the bargain (free!) and move on?

If a business demonstrates value that the customer is seeking and delivers on that promise, shouldn't people pay what is fair (or even more)?

What do you think?

Imagine a doctor who only got paid if the patient was happy with the service and treatment.

Imagine a restaurant where you not only tipped what the server was worth but also paid the restaurant what the service/decor/food/atmospher was worth.

Do we trust people enough to trust their judgment on what to pay?

In this bargain grabbing low economy world will people always underpay?

What do you think?

Are you willing to rely on the busker payment method for at least one of your goods or services? Why or why not?

-- Douglas Brent Smith

http://frontrangeleadership.com

P.S. update: I keep thinking about this from time to time. What surfaces often is the inequity of how we as a society pay people. Many professionals prosper, but my friends in retail, food service, and early childhood education struggle with below-median wages and ever shrinking benefits. If we made that voluntary, would it decline even further?

Are people valuing the right things? Is the work provided by that cashier really less valuable to you than you already pay?

I still don't know the definitive answer, so I welcome your opinion. How do we value your service?

(22 September 2012)

Comments

There Is No License for Laziness

I like to take a day off once in a while. I enjoy long walks with nothing to do but walk. It's not all about outcomes and goals. But those outcomes and goals ARE still important. We earn our leisure, don't we? The trouble with casual laziness is that it's contagious. And, laziness is persistent. And, before you know it, laziness becomes a way to be. Don't be lazy. (That's me, talking to myself. Listen in if you want to!) I like to come up with crazy ideas. I like to do weird work. I like to take long walks with nothing to think about but thinking. I've lived long enough to be eccentric. But not long enough to be lazy. Now, get busy... -- Doug Smith

All Edge in Moderation

I once had a boss who, during my performance evaluation, told me that I was doing a good job as a leader but that I needed to develop more of an edge. I wasn't quite assertive enough. She was concerned that people might take advantage of me. I worked on my edge as a result. I sharpened it thru steady practice. I had an edge to end all edges. At the next evaluation, what do you think she suggested? "You need to dial that edge down a bit," she laughed. It's not either/or. Assertiveness is valuable and necessary. Aggression, not so much. You don't have to dull your edge -- just don't cut yourself with it. -- doug smith

Lead with Compassion

Does your team know that you care about them? How do they know? Is it from your flexibility? Is it from your discipline? Is it from the time that you take to talk with each and every one of them on a regular basis? Times are tough for many team members. They are wrestling with issues that we don't even know about, plus some issues that we DO know about. How leaders respond makes the difference between a functional team and a dysfunctional one. Go for the functional, fully moving forward team that delivers on performance. Build trust, build relationships, spend time getting to know your team and letting them get to know you. The payoff is immense. Lead with clarity, courage, compassion, and creativity. If you don't know where to start, start with compassion. Leading with compassion builds trust. And trust propels high performance teams to success. Go for that success. You can do it. You're the boss! -- doug smith

Character Is In The Actions

Some days it's easier to preach than perform. Resist that temptation. Telling people what to do works for a little while, but eventually they are going to watch to see what YOU do. Character, no matter how it is presented verbally, is revealed in action. Kindness is shown by helping. Courage is demonstrated by standing down an evil force or intention. Creativity is demonstrated in the art created, not the art criticized. I've sometimes fallen into the temptation to preach. It comes easy. Opinions just roll off my tongue. But, I'm working on that. Preaching is easy. Performing takes work. Practice build character. Do the practice. -- doug smith

It's More Than Talk

Every conversation is an opportunity to make someone's life better. Take the chance. -- doug smith

Try Not Lying

High performance leaders communicate without lying. That's harder than it sounds. So hard, that hardly anyone ever does it. -- doug smith

Something Other Than Games?

If you turn the system into a game people will game the system. Competition isn't the only way to achieve excellence. What if you could find a way that didn't also bring the side-effects? -- doug smith

Show Integrity

The goals we seek bring a lot of pull to them. We get wrapped in them. It's useful and it's powerful when we care about our goals so much that they propel us forward and keep us working even when we're tired, beyond the boundaries of our usual limitations. But they should not take us beyond the boundaries of our usual values. They should not trick us into bending the rules just because the rules are in the way. Truly high performance leaders of character who are focused, and centered, and noble maintain integrity. No cheating is ever worth the outcome. Integrity is so rare that many people don't even recognize. If you do, be thankful. We need leaders like you. To truly understand integrity you've got to keep it. Even when it's hard. Even the lines are blurred. -- doug smith

Start With Kindness

When you start with kindness you don't have to stay there, but you probably will. It works better for others. It works better for you. If you're human, you'll probably relapse. It does take practice to stay the course. The course starts by starting. When you start with kindness, it becomes more naturally the way. High performance leadership develops from the core leadership strengths of clarity, creativity, courage, and compassion. Build one of those strengths today thru some act of kindness and the others will get stronger as well. -- doug smith

The Benefits of Supervisory Training

When was the last time you had any leadership training? How often do the supervisors in your organization get training? If you are like most organizations, it's never enough. Some teams go without any supervisory training at all and expect supervisors and managers to learn as they go, on the job. Unfortunately, while it is memorable to learn from your mistakes, it comes at a high cost. People get tired. People leave. Important accounts go away. Customers complain. And teams struggle without the skills and knowledge it takes to build cohesive teams that are capable of solving problems, improving performance and achieving goals. Admittedly, I can be expected to support training since I'm in the business. Still, take a closer look at your own leadership career and decide for yourself. Are leaders better off with more training and development or with less? Supervisory training can generate benefits that pay off long after the training is over. Here are just a few of the things sup...

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