The value of any given product or service is all dependent on what someone will pay for it. I had a sales rep in last week trying to convince me that his companies £1000 a day training course for my sales guys was excellent value for money because of the return on investment when they brought in more sales (despite the fact they already bring in more sales than I can cope with). I wanted to know how a 1 day PowerPoint presentation is good value at £1000 when I just paid £750 for a 3 day course to qualify me to work in potentially explosive areas.
Yes and no. I had an argument with a dentist customer of mine recently. She called me out at 8am on a Monday morning because her compressor didn't work so I dropped the job I was doing, battled the rush hour traffic to get there to find it had blown a fuse (I have advised before it needs a 16 amp supply but she runs it on a 13 amp plug). I changed the fuse carried out some tests to make sure it was okay and went back to my shop. Before I left she said she hoped I wouldn't be charging her £100 for the job just to change a fuse. I said that with the travel there and back plus the time on site testing etc it was a 2 hour job. £50 a hour is a fair rate. I also pointed out that she charges me £20 for a 10 minute check of my teeth so that works out at £120 per hour. Ahh yes she says but that covers my premises and equipment, the nurse, the reception, on going training etc. I pointed out that my £50 per hour covers my time, my offices time to process the job, my workshop, stores and office space, my van and tools, the minimum of 10k in spares in my van and a fleet of loan compressors in case we can't fix it there and then. We also undergo training multiple times a year for both technical skills and health and safety regulations and myself and all my guys have done 4 to 5 year apprenticeships. Finally I pointed out that when I need a dental appointment it's normally a few weeks wait but I'm expected within my price to offer 24/7 cover with a 2 hour response time.
She paid the £100.