Art of Value is a unique process for creating an engaging experience with your customer, resulting in happier customers and more income for you. It is based on my experience implementing value pricing with MightyData, my software company.
At the core, Art of Value is about identifying the value you create with your customer and setting a price that creates a fair return on investment (ROI). It is a belief system and business model that replaces hourly billing in professional services.
I believe the art of value is better than hourly billing because the latter creates a conflict of interest with the customer. It is in the customer's best interest for the project to take as few hours as possible (lower price). And, it is in the professional's best interest for it to take as many hours as possible (more income).
Aligning Your Interests
By focusing on the value that is important to the customer, the art of value aligns the interests of the professional with the customer. The customer's profit (value) is the first priority. The professional's price (and profit) is determined in context of the customer's profit.
The art of value compensates the professional for what you accomplish not how long it takes. In fact, you should be paid more for doing something faster rather than slower. A project or solution delivered sooner is worth more to the customer.
No one ever went to college to learn how to fill out a timesheet. You entered your profession to create something of value for your customers and yourself. I have never met anyone who enjoyed tracking his time.
The art of value is a process of resetting your beliefs, some of which you may not even recognize. For example, the idea that something is worth the amount of time it takes to create it is an idea known as the Labor Theory of Value, made popular by Karl Marx.
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