The Basis Of An Alternative, New Pricing and Selling Strategy

If you have read my previous blogs you will know I argue strongly against time-based charging.  Hourly billing fails on tests for morality and ethicality.  Time-based charging is not intrinsically unprofitable, but it is sub-optimal.  You need an alternative, and there is one.

Each customer creates a price 'band' based on their perception of the value - to them - of what you propose to do.  A price outside this band, at either end, will be ignored.  You need to discover this band each time, and to do this you need to be a price searcher, not a price taker.

This would apply to hourly rates too.  How might someone earning £20 per hour view a £300 per hour quote?  Better to quote a fixed price for the package.

“There is a challenge in moving forward through the charging
  hierarchy without resorting to the billable hour”

You will increase your customers' willingness to pay when you are communicating value between you.  There is a challenge in moving forward through the charging hierarchy without resorting to the 'billable hour'.

And do remember that a service needed is always worth more than a service delivered. Note that members of the oldest profession in the world always demand payment in advance!

Professional Service Providers who charge for their time or their materials, or whose prices are influenced by their competitors can find out how to get paid what they're really worth at www.sws_emp.co.uk.