Nate TilleyCo-Founder, ROAS · Direct Response Expert

This "Unethical" Mistake Could Be Costing Your Business Millions #shorts

Name: This "Unethical" Mistake Could Be Costing Your Business Millions #shorts
Uploaded: 2022-11-22T05:57:00+00:00
Duration: 55 s
Channel: Nate Tilley
Description: A short YouTube video by Nate Tilley arguing that charging by the hour is unethical because price should follow value, not time. The speaker gives a…

22 Nov 2022 · 1 min

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A short YouTube video by Nate Tilley arguing that charging by the hour is unethical because price should follow value, not time. The speaker gives a factory example: engineers charging $500–$1,000/hour fail to fix a production outage costing $100,000/hour, while a more experienced engineer fixes it in 15 minutes and charges $100,000 — illustrating that buyers pay for expertise (years of experience) and the value delivered, not minutes worked.

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Nate Tilley

November 22, 2022

Chapters

Charging by the hour is completely unethical because value has nothing to do whatsoever with time. So imagine that you owned a factory and your production line was down and every hour that it was down you would be losing $100,000 an hour. And you get a whole bunch of engineers coming through and they're charging you anywhere between $500 to $1000 per hour to try and help you solve this problem. And they're there for hours on end breaking their head trying to figure it out and none of them can. And then you have another engineer who stroll and he fixes the problem within 15 minutes and charges you $100,000. Is it worth it? Of course it's worth it because that engineer has just saved you millions of dollars in lost production. You're not paying for their 15 minutes of time. You're paying for the 15 years that it's taken them to acquire the skills to know how to diagnose and then fix that problem in just 15 minutes. And that's why.