It’s Not About the Hours

Here’s a question posted on a public forum that came to my attention via Google Alerts:

I have a client who just opened a new business. He wants to utilize our support options, but isn’t sure how many hours per month he would need us. He is asking about buying a bank of hours that could be rolled over to the next month if unused. Also, we bill in 15 minute increments and he is concerned that a lot of time would be eaten up with us replying to emails. Has anyone dealt with a situation similar to this?

This is just one of the many issues you encounter when you price your services based on selling hours. You don’t know how long things will take going in and clients worry about their hours being frittered away and what their bill will be afterwards.

Do you see how the focus is all on the time?

Achieving results for clients should be the focus of your work, not watching the clock, having your hands tied behind your back and having to stop in the middle of things because time has run out.

Guess what? When you learn how to utilize value-based billing in your business, hours don’t matter!

No one needs to know upfront how many hours will be needed or used… because the focus is on accomplishing the work and achieving the goals and objectives it is in support of, not the hours.

With value-based pricing, it doesn’t matter how many emails are sent back and forth with clients or how much time is spent reading them… because they aren’t paying for time and you aren’t selling hours.

EVERYTHING from your conversations with clients, to your work, to your administration is soooo much simpler and more streamlined when you utilize the value-based pricing methodology.

And clients are more attracted to this way of billing and working together. When you utilize value-based pricing, it’s much easier for them to say “yes” to working with you!

This is what I’m teaching this month in my Value-Based Pricing & Packaging class on June 27 & 28: How to Price & Package Your Retained Support Based on Value and Expertise—NOT Selling Hours!

I’m going to show you with step-by-step instruction how to price and create value-based packages custom-built for each client’s unique needs that make working together a breeze (not to mention help you earn better)!

The Early Bird discount is over, but you can still get in on some savings. Register by June 9 and pay the special rate of $147 (a savings of $50).

Click here to register and get more details >>

I’d love to see you there!

3 Responses

  1. Judy Reyes says:

    Really good comments in response to the question about hours and billing. Plenty to think about and to discuss with potential clients. p.s. the Value-Based Pricing class is good and I recommend it.

  2. Carmen says:

    I totally believe in value based..there is no rolling over of no minutes at all..and though we keep a time tracker for our “personal assistant services” we do not for our “administrative services”. To be efficient and effective and have it show on your work and project is way more important than worrying about how many hours was spent.

  3. Amanda says:

    Hi Danielle,
    I recently purchased your Value Based Pricing tool – which has been very helpful.
    I have been warned that while clients initially like the idea of “to the minute billing” or 15-minutes or whatever that it will leave them feeling nickle and dimed. While I had not encountered this – it was one of the reasons I was looking to transition. Wouldn’t you know I’m now dealing with a client not wanting to pay his bill because he feels like he’s being nickel and dimed. We delivered what he needed at a great price, but he feels that my time meeting with him to review the work and the time we spent researching other items for him shouldn’t have been billed. Needless to say – I’m even more convinced that value based pricing is the way to go.

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