{"id":4449,"date":"2006-03-23T14:10:07","date_gmt":"2006-03-23T18:10:07","guid":{"rendered":"http:\/\/blogs.law.harvard.edu\/formerlyknownas\/2006\/03\/23\/the-value-billing-babysitter\/"},"modified":"2011-08-05T14:54:03","modified_gmt":"2011-08-05T18:54:03","slug":"the-value-billing-babysitter","status":"publish","type":"post","link":"https:\/\/archive.blogs.harvard.edu\/ethicalesq\/2006\/03\/23\/the-value-billing-babysitter\/","title":{"rendered":"the value-billing babysitter"},"content":{"rendered":"

<\/a><\/p>\n

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Our “friends” Jack and Jackie Cliente have five kids, ages 3 through 13.<\/font><\/p>\n

For the past few years, they have been quite pleased with their main <\/font><\/p>\n

babysitter Reese Morrispoon, who is now a high school junior. Reese <\/font><\/p>\n

is mature for her age and smart, and gets along well with all the Cliente <\/font><\/p>\n

kids (with the exception of the eldest, Sadie, who has just discovered <\/font><\/p>\n

boys and is often sulking). Reese has two younger siblings, who <\/font><\/p>\n

occasionally assist Reese or perform babysitting chores that are less<\/font><\/p>\n

taxing. <\/font><\/p>\n

 <\/p>\n

The Clientes pay Reese $6\/hr., which is as much as any babysitter gets <\/font><\/p>\n

in their community. The younger Morrispoons get $3 and $4 an hour, <\/font><\/p>\n

because they have less experience and are given less reponsibility.<\/font><\/p>\n

 <\/p>\n

\"WitherspoonAsWoods\" <\/font>reese<\/em><\/font><\/font><\/p>\n

 <\/p>\n

Jackie Cliente faxed me over the following letter that she received today <\/font><\/p>\n

from Reese, asking how she should respond:<\/font><\/p>\n

 <\/p>\n

 <\/p>\n<\/blockquote>\n

March 20, 2006<\/font><\/p>\n

\n

 <\/p>\n

<\/blockquote>\n

Mr. and Mrs. Cliente<\/strong>,<\/font><\/p>\n

 <\/p>\n

I’ve been very happy being your babysitter, but hope we could talk <\/font><\/p>\n

about my fees. I really think you will love my ideas. A few days<\/font><\/p>\n

ago, my parents came back from a conference they attended <\/font><\/p>\n

called LaxThink<\/a><\/em>. They got lots of ideas about how dad could charge <\/font><\/p>\n

for his lawyer services and mom for her accounting services, to get <\/font><\/p>\n

out of the “nasty rut of hourly billing” (because clients really hate <\/font><\/p>\n

paying by the hour, they told me).<\/font><\/p>\n

 <\/p>\n

They learned that many clients feel a lot<\/em> better when they pay more<\/em><\/font><\/a> <\/font><\/p>\n

money for services, because they feel they are getting more value. <\/font><\/p>\n

Dad is a really sensitive guy (for a lawyer), and he explained to me <\/font><\/p>\n

how important <\/font>price sensitivity<\/font><\/a> is when setting your fees. (Some guy <\/font><\/p>\n

named <\/font>Ron<\/font><\/a> is the expert, he must be a baker or chef, because he <\/font><\/p>\n

talks about prices for sweets, and ice cream and pop corn.) <\/font><\/p>\n

 <\/p>\n

\"ElefantC\" carolyn<\/em><\/font><\/a> <\/font><\/p>\n

 <\/p>\n

Mom told me that they were really excited about the idea of <\/font><\/p>\n

“differential billing”– charging more for doing some things things that <\/font><\/p>\n

are harder or more valuable and useful to the client (like stuff my little <\/font><\/p>\n

sibs probably couldn’t do, but I can). I went online to do some research <\/font><\/p>\n

and a very nice attorney named <\/font>Carolyn<\/font><\/a>, who is a mother, and writes <\/font><\/p>\n

kind of a <\/font>gossip column about lawyers, says differential billing is “<\/font>a <\/font><\/p>\n

great suggestion<\/u>.”<\/font><\/font><\/p>\n

 <\/p>\n

She gives credit to a man with a great name — Rees<\/a>! — who talls about <\/font><\/p>\n

it in a post at <\/font>his website<\/font><\/a>. Rees describes the concept as “Different <\/font><\/p>\n

billing rates for the same lawyer, according to the task\u2019s usefulness to <\/font><\/p>\n

the client.”<\/font><\/p>\n

<\/font><\/em>rees<\/font><\/em><\/a> \"reesM\"<\/font><\/p>\n

\n

\"tiny To be honest, Rees might be a worrywort. He says his idea <\/font><\/p>\n

is “Logistically a nightmare and beset with subjectivity<\/em>.” But, <\/font><\/p>\n

you know and trust me, and you love your children so<\/em> much, that <\/font><\/p>\n

I’m certain we can agree on “a billing system that matches fees <\/font><\/p>\n

charged to worth delivered.” <\/font><\/p>\n<\/blockquote>\n

\n
<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n

Here are some of the things that I do or might do while babysitting that <\/font><\/p>\n

I believe are especially valuable and useful for you as parents and for <\/font><\/p>\n

your children. Next to each is my proposed “value-added fee.”<\/font><\/p>\n

 <\/p>\n

 <\/p>\n