Legal Law

The value of a true professional is priceless

Mastercard ads say a hot dog at a ballpark is $5 and a ticket near the field is $75, but watching your kids have the time of their lives is “priceless.”

That is good wording because it wisely reminds us that there is a difference between price and value. What we pay only makes sense when viewed through the lens of what we get in return.

The same precept applies to the hiring of professionals, such as lawyers, accountants and consultants. We might agree that the average urban professional charges between $150 and $350 per billable hour.

But what do the best advisers deliver? Advice?

Of course; but there is more

The “invaluable” part of his contribution can be summed up in one word: Judgment.

Years ago, before I became a lawyer, one of my attorneys advised me not to accept an offer from a major media company to do a video show for $25,000.

It was the wrong call.

His poor judgment cost me not only $25,000, but also potentially lucrative royalties from then on. I gave up on a rapidly developed and marketed product that would have “occupied the field” and had the effect of firing my competitors.

I forgot what I paid my counselor. But I remember it to this day, and I regret what it cost me!

When you hire an attorney to draft a contract, you are looking for an agreement that contains terms that are as favorable to you as possible. But what you really should be interested in is a final settlement that is smoothly executed by all parties and doesn’t end in costly litigation or default.

If your attorney drafts a document that is too lopsided, egregious, and controversial, he or she might even scare your counterpart, making you seem unreasonably demanding and undesirable.

An overly timid accountant will not take advantage of all the legitimate deductions he can take on your behalf. By misjudging the likelihood of an audit, it could cost you much more than what you’re paying to retain it.

There is a legendary story about a consultant who had a brief and historic conversation with the pharmacist who developed the Coca-Cola formula.

He knew who the winner was when he tried it, but he also realized that distribution and demand would always be limited if consumers could only buy the concoction at the corner drugstore.

His suggestion: “bottle it!”

It’s easy enough to recognize poor judgment in hindsight, but that doesn’t do us much good. We need to predict the discernment of a professional.

That puts us in the strange position of having to judge not only the character and competence of a consultant, but also their judgement.

It is a difficult task, but not impossible to execute. Get it right, and your results will be priceless.

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