After discussing the limitations of hourly rates in a Facebook group, Matthew Habuda decided to give value pricing a chance. He started with a small project and progressed to a Fortune 500 opportunity. Along the way, he had to convince the customer and subcontractors it was the right decision. He shares his results and why he will never bill by the hour again.
Seth Godin recently published a blog post titled When to charge by the hour. And while usually I agree with most of what he writes, this time, I have a different point of view. First, in principle, I do not believe anything should be priced by the hour. The customer is buying the outcome of the […]
Tim Dietrich is a mobile application consultant and the developer evangelist for Airtable. He was formerly a database consultant in the FileMaker space, creating several open source projects for the community. He majored in computer science at Towson University. Tim’s first appearance on the Art of Value was episode #28, A Contrary View to Value […]
Greg Kyte is a CPA and comedian. He teaches ethics and fraud courses for accountants with a comedic edge at ComedyCPE.com. He is also the G. Robert Newhart Non-Value-Added Fellow at Versage Institute. The Real Context of Value What is the most important thing you can share about pricing? You need to price your services like you […]
John Chisholm helps law firms move from hourly billing to value pricing. A 25-year lawyer turned business consultant, he says the problem with the cost of legal services is not the amount. It is the unpredictability. Customers prefer the experience of and will pay more for price certainty. John shares how this single change can inspire a spirit of innovation and entrepreneurship in lawyers.
Price is more than a number. It is part of how a lawyer communicates value to the customer. To unpack this principle, Jay Shepherd, an employment litigation attorney, compares how a customer perceives an hourly rate vs. a fixed price. He says knowledge instead of activity is more valuable to the customer. Value pricing enables the customer to purchase what he wants in a manner he truly enjoys.
Tim Dietrich is a database consultant, specializing in the FileMaker platform. He is the author of FileMaker Pro 13 Absolute Beginner’s Guide and creator of FMEasySync, an open source sync framework for FileMaker. Wins & Losses in Value Pricing What is the most important thing you can share about pricing? Tim mentioned my session from FileMaker DevCon 2009 with Jonathan Stark. […]