Tuesday, September 21st, 2021

Labor & Value

“Until you value yourself, you won’t value your time. Until you value your time, you will not do anything with it.” – M. Scott Peck

Periodically, I repost a blog by Seth Godin. I do this when I think that it has special meaning to the CPA profession. I have observed that many CPAs still bill according to the amount of labor (time) that is involved in a client engagement. You should always consider how much value the client receives. Here’s Godin’s post:

Labor and Value

Adam Smith and David Ricardo argued that all value comes from labor, and the value of something is in the amount of labor it took to produce it.

But Henry George understood that this is backward. The value of something lies in how much labor we’re willing to exchange for it.

Too often, we’re tempted to price things based on what they cost us to make. It’s more useful to price things based on what they’re worth to those that might want to buy them.

  • "If you don't know your own value, somebody will tell you your value, and it'll be less than you're worth."
  • Bernard Hopkins

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