Consultant, hourly pricing is value-based pricing.
Hear me out. 👂 ⬇️
When clients hire you by the hour, they typically compare your fee to the cost of hiring an employee for the same effort. The hourly fee is based on that number. That’s how clients rationalize your value.
They do that because the employee cost anchor is the only one they know. The market picks this up and over time the “going rate” for consulting services is set and becomes the norm.
“Value” is how much buyers are willing to pay. So if they believe you are worth $X per hour,
then that’s based on value, after all.
I can’t blame consulting buyers for thinking this way because for the most part consultants don’t challenge the norm and change the conversation around value.
Instead of accepting the norm and being valued based on available alternatives, what if you engage potential clients in conversations around their biggest frustrations, desired outcomes, costs of inaction and what’s truly possible for them to achieve?
I’m not saying it’s easy and everything can change overnight, but for clients to value your services differently, you need to start making them see you differently.
Learning the art of marketing and sales (discovery) is the best place to start.
Curious – how do you charge? Hourly, fixed fee, value-based depending on client needs?
LMK in the comments.
Ready to add $100k-$500k revenue to your consulting business in 12 months or less without burning out? Schedule a call and let me show you how.
Image credit: Direct Art Australia