The Locksmith Paradox 🔐

Imagine a junior locksmith who initially takes an hour to complete a basic lock task for the customer.

The customer pays £100 for the task and is happy with the service.

The locksmith continues to perform this basic task on a regular basis. By the following year, the junior locksmith is now a senior locksmith.

The same customer calls the locksmith back for another basic lock task. Due to the accumulated experience, the senior locksmith is able to complete the task in just 30 minutes.

He asks for his £100 and the customer stares at him, confused.

The locksmith has improved at his craft, but the customer has become upset by the lower time input required to deliver the fixed output.

The results are the same, but the customer’s perception of value changed.

The output is the same, but the perception of value is reduced by 50%. You are getting penalised for your proficiency.

This can lead to an unfortunate “game” that employees have to play: Create the illusion of work and long hours that mask productivity and efficiency gains.

The most critical suggestion for how to manage this paradox:

Focus on Outputs > Inputs.

Traditional corporate culture has an obsession with input—hours worked—when what really matters is the output.

It seems obvious, but as a manager or employee, always push for a focus on outputs vs. inputs.

It takes time to shift cultures, but it’s worth it in the long run.

As a solo entrepreneur or freelancer, seek to detach earnings from hours. Rather than charging by the hour for your service or offering, charge based on deliverables.

As you find new leverage in the system, you’ll be able to scale your time efficiently and rapidly increase your income and wealth creation potential.

So the next time a manager, client, or customer seems too focused on your inputs, shift the discussion to focus on the outputs. In the long run, everyone will benefit from this reorientation.