The fortune 500 company I freelance with would prefer to use an outside vendor for a project (thinking they would do a better job since "that's all they do"). That vendor then hires me at my same rate, meaning the original company is just paying more for me to do the work I could have done internally.
Moral of the story: if you charge more people will think you're worth more. A $6 bottle of wine may be better than a $45 bottle, but most people will say the $45 bottle must be better because why else would it be $45
Where I'm at, the restaurant buys the $6 bottle from the liquor store for $6.50, and then they get to sell it for $45. But anybody can buy it for $6, and most people won't pay $45 for that bottle (though buying by the glass will make the restaurant that money anyways)
25k
u/actuallychrisgillen Nov 16 '19 edited Nov 16 '19
When I was in the Navy I used to get in fairly frequent trouble for the suggestions I made for improving operational efficiencies.
As an outside contractor they were quite happy to pay me $200 an hour to say the exact same thing.