When I was in engineering, we would pride ourselves not on solving hard problems (that is for scientists) but instead on producing the most valuable results that required the least effort.
In value-based pricing, we’d like the customer to focus on valuable results without regard to our level of effort. Bringing them an extra million dollars of revenue is of the same value whether we put my heart and soul into it for countless hours or did it instantly and effortlessly.
Often clients are focused on “rate times hours.” Sometimes we even get dragged along for the ride leading us to either leave money on the table or lose the sale entirely.
Chris Do is among my favorite speakers on businesses for creatives in general and on value-based pricing in particular.
In this video, he teaches how to escape the “rate time hours” trap.
