EPISODE 40: Why and How to Get Out of the Trap of Billing Hourly—with Jonathan Stark
In this Craft of Consulting podcast episode, I interview Jonathan Stark. He is a former software developer and consultant who is now on a mission to rid the world of hourly billing. In his first year as a solo consultant, Jonathan doubled his income by replacing hourly billing with value pricing. Now he coaches independent professionals as they transition from hourly billing to value-based and other pricing models. In addition to hosting the Ditching Hourly weekly podcast, Jonathan is the author of Hourly Billing is Nuts and writes a daily newsletter on pricing for independent professionals. In today’s episode, Jonathan explains how value pricing can dramatically increase your profits; decrease your labor; and, most importantly, increase your clients’ satisfaction.
Jonathan shares over a decade of real-world experience successfully applying value pricing to his own consulting work and coaching hundreds of independent professionals on alternatives to hourly billing. In this podcast, we talk about:
Eliminating the pitfalls of hourly billing for you and your clients
Increasing your profit and your clients’ satisfaction with value pricing
Focusing sales conversations on the value of business outcomes vs. negotiating rates
Figuring out what clients really need vs. what they think they need
Setting clients’ expectations about how you’ll interact with them
Calculating value pricing for big consulting projects
Earning more without working more
Eliminating concerns about project changes, scope creep, and budget overruns
Transitioning your consulting business from hourly billing to other pricing models
More about Jonathan:
More about Ditching Hourly:
In this Craft of Consulting podcast episode, I interview Adam Falcone.
Listening Time: 35min.