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Price is a very strong signal of quality. Higher price usually indicates higher quality, and lower price indicates lower quality. Thus the expression, “You get what you pay for.”

As the example below will show, this is not always true. The discerning mind will separate the issue of price and quality. The point being, the ability to judge quality is paramount, and often, the price becomes a distraction, not a useful leading indicator.

In talent management, there is the notion of a “Moneyball” hire. These are people who are not well known, not visible, do not know how to market themselves, and are available for a much cheaper salary than they deserve. Staff augmentation and consulting companies love these people because they keep costs down and margins high. Customers on the other hand, feel duped, because now they are paying a premium price for working with a resource who is not worth the price.

Therefore, in addition to quality, scarcity becomes an important factor in pricing. When an item is scarce, whether it is talent or a physical product, or a service, the quality almost does not seem to matter.

The solution is to become a “Moneyball” recruiter, unless you are looking for a high profile hire. In the latter case, you can demand high quality, and expect a high price. If you are a “Moneyball” hire, first, accept the reality that the world is not perfect and that you had a role to play in your low salary. Then put your head down and work hard to overcome the anonymity and introvert tendencies that trapped you in the lower price.