Why Charging By The Hour Doesn't Make Sense

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—
Host: Chris Do
Producer: Mark Contreras
Cinematographers/Editors: Stewart Schuster, Mark Contreras, MOCS Media
Typefaces: Futura, DIN, Helvetica Now, Calibre, Knockout, Champion Gothic

[enriquez]

“Here’s the deal, I work really fast. I’m being punished for being efficient.”
Me to my wife after I finished in 33 seconds

[slappy]

My dad used to work for a construction company that offered very good bonuses for meeting the time, quality, and budget requirements, but after he started maxing out his bonuses, they decided that they were paying him too much, even though he could get a restaurant up and running twice as fast as the other superintendents, so they raised the standards and lowered the bonuses. The effect this had across the company was that everybody just decided to forget about the bonuses, and do the work at whatever Pace they felt like, so that production fell by a significant margin. It never fails that any time you meet a company's expectations, they just raise the bar and lower the incentive.

[theprovoked]

Every hourly worker just shed an invisible tear.

[natk]

I heard someone describe this as, you're not just paying for the time it took to physically do the task. You're also paying for all the years it took to get this good at doing the task.

[SicQueldorei]

This is a concept I have to explain fairly regularly to my customers. I own an automotive repair shop. We charge hourly based on how long a job is supposed to take according to industry standard labor guides. If a job calls for 2 hours and it takes me 3, you pay 2 hours. If that same job takes me 5 minutes, you still pay 2 hours. Charging this way serves 2 purposes. First it protects the consumer from overpaying for a job because a technician decided to drag his feet. Secondly it rewards efficient and experienced technicians who can complete a job faster than expected.

[whattosay]

You right there exposed the whole consulting business model.

[stevepicray]

I had a job where they told me that if I finish my work early, they will give me more work to keep me there 40 hours. I said, "You just disincentivized me to work faster."

[EnCroissant]

I love a teacher that teaches their student to think critically. I was in debate in highschool, and I remember one particular debate where she had us choose a side, and then switched it up on us by having us argue on behalf of our opposing arguement. I had to advocate the Patiot Act. I'll never forget Ms. Fallon or her lessons.

[chloe]

my dad is a generator tech. he said if youre getting paid hourly, you wanna take as long as you can on a job. if youre getting commission, then you wanna get it done as efficiently and as fast as possible

[iconiccreations]

"You're not paying for my time. You are paying for my talent, skills and experience."

[newaccount]

Here is the problem. The business owner values his time but he doesn't value yours.

[WetOlde]

A bile mechanic once said to me: you don’t pay for my time. You pay for the time i saved you.

[josephflannery]

As someone who does photography for a living. This is 100% accurate. I can take the photos you wanted in 15 minutes. But clients pay for hourly sessions. If I told someone 300$ for 15 minutes, I wouldn’t have a business, despite being able to get what I needed done.

[GFSFC-kn]

Had a client tell me the same argument after I fell a massive tree that stood in between his 2 buildings. He argued that he paid me more than a surgeon cost to cut the tree. I told him he didn’t pay me to cut the tree, he paid me to guarantee it didn’t fall on one of his buildings. Its like a lightbulb went on. From there on I did all his landscaping at all his buildings and we are still friends 10+ years later. Skill costs money.

[pacmonkruz]

This is my biggest problem with hourly jobs, it makes me even sleepy just thinking about it

[DanielSturge]

When I was into grapic design I use to tell my clients when they asked for price.

Time, quality, and price. You pick 2 and it dictates the 3rd

[GODPandrr]

I love how he is interactive rather than just saying what it is - great way to learn

[armenchalian]

“I can do things two of three ways, fast, good, cheap. Pick any combination of two.”

[Broseidon]

At amazon i used to get paid my full 10 hour shifts paid even if i finished 2-3 hours early. After some months they would start giving me extra work since i was done early until i completed my 10 hours so i started slowing down more

[KrispyBarbarian]

Thers that old joke/story where a painter made a beautiful painting of someone in just a few minutes, and that person complained about the price, and painter said that he learned for 30 years to be able to make this kind of painting in such a short time so part of that price is for his experience and actually saved waiting time.