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Embracing Outcome-Based Pricing and Ditching Hourly Billing with Jonathan Stark

Embracing Outcome-Based Pricing and Ditching Hourly Billing with Jonathan Stark

FromImpact Pricing


Embracing Outcome-Based Pricing and Ditching Hourly Billing with Jonathan Stark

FromImpact Pricing

ratings:
Length:
32 minutes
Released:
Jul 10, 2023
Format:
Podcast episode

Description

Jonathan Stark is a former software developer who is on a mission to rid the world of hourly billing. He is the author of Hourly Billing Is Nuts, the host of Ditching Hourly, and writes a daily newsletter on pricing for independent professionals. In this episode, Jonathan highlights the drawbacks of billing hourly which can reduce your value to just a commodity. Instead, he suggests pricing your services based on the outcome you deliver, thereby providing maximum value to your clients.   What you will learn from this episode: Discover the top reasons behind the shift away from hourly billing Find out the advantages of choosing outcome-based pricing over hourly billing Uncover why positioning your service effectively can have a significant impact on your pricing strategy   "Positioning is critically important for any kind of upward lift on your fees." - Jonathan Stark   Topics Covered: 01:04 - What got him into pricing 03:35 - The problem with having an hourly rate 06:11 - Pricing uncertainty in the case of a car diagnostic 08:45 - What makes it better charging fixed price upfront 10:33 - Why positioning your service is crucial in pricing 12:59 - What hourly rate appears to be on the label 16:15 - Touching on the 'Experience Economy' [pricing transformation] 19:06 - Formula for value or the maximum price 21:36 - The best reason to not use hourly prices 24:22 - Solving the scope problem with knowing the desired goal 29:21 - Jonathan’s pricing advice 30:38 - How to connect with Jonathan   Key Takeaways: "If you sell somebody an hour, you cannot make it more efficient. It takes an hour to deliver it. It artificially limits your income." - Jonathan Stark “The way I do it [on the scope problem], I don’t scope first, I scope last.” - Jonathan Stark   People / Resources Mentioned: Alan Weiss: https://alanweiss.com/about-alan-weiss/ Joseph Pines: https://strategichorizons.com/pine-and-gilmore/joe-pine/ How to Measure Anything: Finding the Value of Intangibles in Business by Douglas Hubbard: https://www.amazon.com/How-Measure-Anything-Intangibles-Business/dp/1118539273   Connect with Jonathan Stark: Website: https://jonathanstark.com/   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com  
Released:
Jul 10, 2023
Format:
Podcast episode

Titles in the series (100)

The Impact Pricing Podcast will help you win more business at higher prices by teaching you about pricing and value. Once you understand how your buyers perceive the value of your product, you can build, market and sell products that win at higher prices. Pricing is really about creating, communicating and capturing value.