Consulting Fees and Uncertainty are directly related

The concept of Uncertainty Arbitrage is something Victor Cheng wrote about for consulting career prep website, Case Interview.

The reason clients pay consulting firms seemingly enormous fees is directly proportional to:

1) What’s at stake for the client if they make the wrong decision

2) Their dislike for uncertainty.

The greater the uncertainty and the greater the consequence of a wrong decision, the greater the anxiety the client feels.

Great way of looking at it.