$2,500 Machu Picchu experience vs. a $90 one. Same ruins. Same hike. Who got the better deal?
What does this story teach us about sourcing labor?
You can listen to the article above.
In 2014, while studying abroad in Chile, I joined some fellow students from Spain on a trip through Peru and Bolivia. We flew to a city south of Cusco and bused our way north. At this point, we had no confirmed plan for how to reach Machu Picchu. Being the planning type, I was anxious.
My Spanish friends told me to calm down, gringo, and let them handle it.
When we arrived at the Cusco bus terminal, Peruvians swarmed us, offering Machu Picchu packages. My friend Dani—who was studying hospitality—stepped up. He negotiated a multi-day package: van to Aguas Calientes, meals, lodging, admission to Machu Picchu, van back. All for $90 USD.
Later, a friend from Georgia Tech told me he’d “found a deal online.” Same trip, same destination, similar itinerary. But booked from the U.S. ahead of time—for $2,500. That $2,500 didn’t include his flight to Peru.
Maybe his hotel was a bit fancier. But was it 25x nicer? Probably not.
So, what’s the business takeaway?
When you cut out middlemen and get closer to the source—whether it’s raw materials, services, or talent—you can often save orders of magnitude in cost.
This is especially true in labor markets.
Search Google for an “analytics consultant” or “auditor” or “developer,” and you’ll likely land on the page of a big firm with layers of overhead. That firm may charge you 3x what the actual expert gets paid.
Sometimes middlemen are worth it—my friend Jody Hesch wisely points out that great matchmakers (agencies, firms, recruiters) accelerate business for both sides. A 10–15% markup? Totally fair.
But a 300% markup?
Why share this now?
Because a lot of companies don’t realize that they can get FAANG and Big 4-level consultants for a fraction of the price—if they’re willing to look beyond the usual suspects.
This isn’t about promoting me. Frankly, more of my discovery calls end with: “I think you’d benefit from a chat w/ my connection XYZ—can I introduce you?” than end with: “So, would you like a proposal?”
*It’s been more than 10 years. I might be slightly off in my costs. But I know my cost was for sure <$200 and my friend’s was >$1000.



I think the real lesson here is less about cutting out middlemen and more about sales channel -- rich, planning-type gringos, without local knowledge want to book online, in English and pay with their credit card whereas once you're in country, speaking Spanish you're part of a different customer segment being sold through a different distribution channel, word of mouth.
Sounds like a great trip though! I wonder which tour guides are being paid the best?
Pricing is such a fascinating reality.
Some things are so overpriced, and sometimes you get what you pay for.