Ditching Hourly

Converting Hourly Clients To Value Pricing

Listen Later

Ditching Hourly 023: Converting Hourly Clients To Value Pricing

Hello! and Welcome to Ditching Hourly. I'm Jonathan Stark.

Today, I'm going to talk about how to transition your existing hourly clients over to value pricing.

  • It's wicked hard
    • They don't think of you the way you want them to
    • It'd kind of like being in the friend zone
    • Probably easier to find new clients who don't have you pigeonholed in the wrong place
    • BUT if you love the client or whatever, and want to give it a try, here are some tactics for you
    • Quietly lay the ground work while still billing hourly
      • Try to gain more access to business people (e.g., founder, president, ceo, sales director) vs tech people (dev lead, dev manager, project manager, cto, even cio)
      • Start probing for business cases behind specific requests
      • Politely offer alternative solution when they occur to you
      • Wait for an opportunity to quote a new chunk of work
        • Pull your business contacts into the "scope" meeting
        • Have a Why Conversation to get at the desired business outcomes
        • Present a proposal with both and hourly estimate and a fixed price
        • What you SHOULD NOT do:
          • Don't barge into their office a say "so, we're going to do value pricing from now on!"
          • Don't try to explain what value pricing even is
          • How you price is none of their business
          • But if they ask, say "based on past experience with this sort of thing"

            • That's it for today. I'm JS and this is Ditching Hourly. Thanks for listening.

            The next time someone asks you for your hourly rate, this is what you should say: "I don't have one." To learn what to say next, visit http://valuepricingbootcamp.com to signup for my free email course. Again, that url is: http://valuepricingbootcamp.com

            The next time a client asks you to justify an entry on your timesheet, go to http://valuepricingbootcamp.com to signup for my free email course. Again, that url is: http://valuepricingbootcamp.com


            ----

            Do you have questions about how to improve your business?

            Things like:

            • Value pricing your work instead of billing for your time?
            • Positioning yourself as the go-to person in your space?
            • Productizing your services so you never have to have another awkward sales call or spend hours writing another custom proposal?

            Book a one-on-one coaching call with me and get answers to these questions and others in the time it takes to get ready for work in the morning.


            Best of all, you're covered by my 100% satisfaction guarantee. If at the end of the call, you don't feel like it was worth it, just say the word, and I'll refund your purchase in full.

            To book your one-on-one coaching call, go to:

            https://jonathanstark.com/call

            I hope to see you there!

            ...more
            View all episodesView all episodes
            Download on the App Store
            Ditching HourlyBy Jonathan Stark
            • 4.7
            • 4.7
            • 4.7
            • 4.7
            • 4.7

            4.7

            54 ratings

            More shows like Ditching Hourly

            View all
            The Tim Ferriss Show by Tim Ferriss: Bestselling Author, Human Guinea Pig

            The Tim Ferriss Show

            16,121 Listeners

            Conversations with Tyler by Mercatus Center at George Mason University

            Conversations with Tyler

            2,452 Listeners

            Startups For the Rest of Us by Rob Walling

            Startups For the Rest of Us

            703 Listeners

            The a16z Show by Andreessen Horowitz

            The a16z Show

            1,090 Listeners

            Marketing School - Digital Marketing and Online Marketing Tips by Eric Siu and Neil Patel

            Marketing School - Digital Marketing and Online Marketing Tips

            1,263 Listeners

            Founders by David Senra

            Founders

            2,165 Listeners

            The Game with Alex Hormozi by Alex Hormozi

            The Game with Alex Hormozi

            4,454 Listeners

            REWORK by 37signals

            REWORK

            210 Listeners

            The Futur with Chris Do by The Futur

            The Futur with Chris Do

            856 Listeners

            My First Million by Hubspot Media

            My First Million

            2,655 Listeners

            The Prof G Pod with Scott Galloway by Vox Media Podcast Network

            The Prof G Pod with Scott Galloway

            5,553 Listeners

            All-In with Chamath, Jason, Sacks & Friedberg by All-In Podcast, LLC

            All-In with Chamath, Jason, Sacks & Friedberg

            9,938 Listeners

            Deep Questions with Cal Newport by Cal Newport

            Deep Questions with Cal Newport

            1,328 Listeners

            AI and I by Dan Shipper

            AI and I

            33 Listeners

            David Senra by Scicomm Media

            David Senra

            135 Listeners