I’m excited to have my friend Jonathan Stark on the show this week! Jonathan is on a mission to rid the world of hourly billing.
So much so, that he has a dedicated podcast called The Ditching Hourly Podcast and is the author of Hourly Billing is Nuts.
Jonathan is also the co host of The Buisness of Authority Podcast with Rochelle Moulton.
Jonathan falls right in line with what we talk about on the Pricing Is Positioning podcast.
I’m happy to say we share many of the same ideas.
One of the first things we talk about on this episode is his journey from being a corporate software developer to becoming an independent consultant who has his own podcast.
It was during his time as a corporate employee that Jonathan became aware of the many issues within the hourly billing system.
One of his tasks was to manage a small team for his company.
During this time, he realized that the highest paid employee wasn't actually making the company the most money and the employee that was making them the most money was only getting a starters salary.
That's when he came to conclusion that value based pricing would be a much more efficient option.
But what exactly is value based pricing?
Value based pricing aka "outcome based pricing" is to put it simply, to price the value of services per project rather than just pricing your time.
Time based pricing is limiting and as mentioned above, almost always less efficient for the workers.
One crucial step to implementing value based pricing is to determine the profitability of your services so you can choose projects properly.
But does hourly billing increase profit for everyone?
For some people, it might be good to make the transition to outcome based pricing based pricing overtime.
For others, increasing profit means having to completely switch over to value based pricing.
We discuss this and much more on this weeks episode of the Pricing is Positioning podcast!
If you want to move away from hourly based billing and increase your rates, you wont want to miss this weeks episode of the Pricing is Position Podcast.
In this episode, you will hear: