Many of my clients when they first came to me, found themselves with, what they thought was, maximized hourly rates.
No matter how many extra services they added, they thought they just couldn’t justify increasing the amount that they charged for every hour of their time.
Not to mention that often, they spent more hours doing the work than they would charge their clients for!
Far from an optimal situation.
If you find yourself stuck like this, that’s when you should start experimenting with upfront value-based pricing.
Instead of charging your clients for the hours that you work, you’ll now be charging them for the value that you bring to their business.
To make it work, you’ll have to show your clients the true value of what you’re doing for them. Show them the positive impact that working with you has on their business.
Of course, it’s a big switch. That’s why you should first experiment with upfront pricing with a couple of your best clients.
Explain the change, tell them why you did it, and what extra value they get from you.
Once they’re in – you’ve got to deliver the value.
Make them the happiest clients on Earth. Once you’re sure that it works – and find the best way to approach your clients about the change – start transitioning everyone else.
Making the full switch isn’t as hard as you might think. Once your core clients are in, it’ll be easier to ignore those who’ll oppose or will try to convince you to stick to the old pricing model.
In fact, these are the ones you should let go. But your cash flow and margins will grow.
Of course, if you find yourself with time to spare that you can fill with new clients – go for it!