Dean GraziosiCofounder @ Mastermind & AI Advantage | Serial Entrepreneur

Charge Your Worth. How to Stop Price Your Services.

30 May 2024 · 1 min

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0:58

Dean Graziosi tells an anecdote about a FedEx Memphis hub outage where a technician fixed a stopped conveyor by turning one screw. The technician charged $10,000; his itemized bill read “turning screw, $1” and “knowing which screw to turn, $9,999.” The story is used to illustrate the value of expertise and charging for knowledge, not just tasks.

Questions this video answers

FedEx Memphis hub

$10,000

"Turning screw, $1"

"Knowing which screw to turn, $9,999"

Fred Smith (founder of FedEx)

Chapters

Years ago, the FedEx Memphis hub, all the machines and the conveyor belts suddenly stopped working. All of FedEx packages go through Memphis for anywhere in the world. So reputation and millions of dollars were on the line. They call a service person comes in, looks around, goes to the center hub. And I guess he grabbed a screwdriver, he looked around, went in, turned a screwdriver a half an inch. And the machine started working again. And the whole company started working again. Oh, my God. Fred Smith, the founder of FedEx, freaks out. Oh, my God. Thank God you saved this. How much? The technician said, 10,000 DOL. So Fred thought he could be a little slick and get back at the technician. He said, okay, could you give me an itemized breakdown of what you did? And the technician said, give me a piece of paper. Fred Smith looks at the paper, walks straight up to the office, gets him a $10,000 check, and comes back and pays him and says, thank you. He leaves. Everybody goes, what the hell was on that piece of paper? It simply said, turning screw, $1. Knowing which screw to turn, $9,999.