In this episode, Kirk visits with Jim about his experience talking with customers about value and price. They explore the challenge of scope creep, and then how Kirk helped Jim price a recent business opportunity. They conclude with a review of Jim's sessions from a recent technology conference.
The typical freelancer spends his or her energy on the technical craft–writing coding, design UI, creating plugins, etc. Yet the most important skill for your success and livelihood is pricing. By learning to price well, you can be selective about your customers and the type of work you do. And, you can actually work less while making more money.[Read more…]
Most professionals (accountant, lawyers, designers, developers) charge by the hour because that is how it has always been done. Jon Lax has done the research to explain why.
In the early 1900s, an attorney at Boston Legal Aide asked MIT for assistance managing a backlog of cases. The result was the creation of the billable hour for professional services. Jon says it is a playbook designed for the wrong era.[Read more…]
The purpose of agile development is to create software successfully by adapting to changes during the development cycle. Unfortunately in practice, agile can wander from the outcome the customer needs. Wes McClure believes a commitment to value and agile development can coexist when you combine a strategic objective that does not change with flexibility in the manner necessary to achieve it.[Read more…]
In October 2014, I had the opportunity to present a session at WordCamp DFW 2014 called Four Steps to Determine Value and Start Pricing. Even though the overhead projector was not working, we had a great session on the four steps to implement value pricing including Q&A.[Read more…]
Since software development is a technical craft, it is easy to focus on the details instead of the big picture. However, failure to focus on why the project is important can doom the endeavor before it starts. By starting with the value to customer, software development has a higher chance of success because every action contributes to the primary goal.[Read more…]
Your story is the core of your brand. If you know your story, you can tell your audience. If the audience connects with your story, they will share your message with others. On the flip side, if you do not have a story, you do not have a brand. Melissa Hawks explains the value of your brand to your customers.[Read more…]
What is the essential ingredient for a successful project? You may be surprised to learn it is having a value conversation. Ed Kless says you can be so good at having a value conversation that project management becomes irrelevant. Before a project begins, you need to ask the customer why the project is important and what success looks like.[Read more…]
In the fall of 2009, I participated in a panel discussion on estimating and billing practices for software developers. I took the position that hourly billing is the only way to charge the customer for custom development. At the same time, another panelist said that billing by the hour places an arbitrary limit on your income. That planted the seed to change my business model forever.[Read more…]