5 pricing arrangements and pricing for expertise not by the hour

2/14/2019

In this week’s episode, I want to share with you five pricing arrangements for your consultancy business and why I don't think you should be charging by the hour. Some of the pricing options I share in this episode may be new to you. And, that’s okay.

I’ve shared this information with professionals in workshops and events, and they too were unaware of the different pricing arrangements that could be used in their business.

Knowledge is power. And after you listen to this episode, you’ll know these five pricing arrangements; which may help you quickly adapt almost any pricing conversation. Instead of a proposal or engagement going south, you may be able to move into a direction that will land you the job or maybe even help you secure a higher rate for your services!

In this episode, I’ll cover these topics:

Hourly pricing: why I can’t stand it and how it puts you and your clients at odds
Refocusing the conversation from time to value and providing different levels of value in pricing options
Daily rates: when and how to use them
Two types of retainers: retainer for deliverables and retainer for access
Project pricing and why I encourage you to consider it as a viable pricing option
Value-based pricing: why it’s a great concept and how to use it

Resources and links referenced:

Blair Enns - Pricing Creativity

Allen Weiss Value-Based Pricing

Allen Weiss Million Dollar Consulting

The Business of Consulting Workshop - Los Angeles

The Business of Consulting Workshop - Sacramento

The Product Pricing Roadmap

Amazon Alexa

Connect with Paul:

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3 Comments

R. Woods

2/17/2019 11:26:47 am

Hi Paul,

I am enjoying your podcast! Can you share your thoughts on publishing pricing on your website?

I am a resume writer and career coach. I’ve had this conversation with others in my industry with mixed opinions.

Part of me feels like publishing the price takes away from the opportunity to really communicate the value of my expertise. Then again, it seems to be a good way to save time discussing pricing or eliminating those who are not willing to pay the price that I charge for the service.

Look forward to your reply or podcast with this topic. :-)

Paul Klein link

2/18/2019 08:54:08 am

Hello Ricklyn,

This is a great question and one that comes up a lot. I think it boils down to 2 things and is why you are getting mixed opinions.

First, it depends on where you are in your consulting and personal brand whether you are well established or just starting out and second how you want to position your brand.

If you are new to your niche or area of expertise and trying to get established, then you may not want to put your rates on your web page so that you can encourage dialogue and relationship building.

If however you are more established and don't have time for lookie loo's and Fiver shoppers, then putting your rates or at least your anchor rate on your web page will help weed out the clients you are not trying to attract.

I also believe that you can encourage relationship building and dialogue as well as weed out the prospects and clients that are not your ideal clients by strategically placing your MLOE (minimum level of engagement) on your web page rather than a full pricing or rate page.

Food for thought and hope that helps. Thanks so much for your comments.

Pleasanton Pest Control link

8/2/2022 07:22:42 am

Good readding

5 pricing arrangements and pricing for expertise not by the hour

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