Embracing Outcome-Based Pricing and Ditching Hourly Billing with Jonathan Stark

<p dir="ltr"><strong>Jonathan Stark</strong> is a former software developer who is on a mission to rid the world of hourly billing. He is the author of Hourly Billing Is Nuts, the host of Ditching Hourly, and writes a daily newsletter on pricing for independent professionals.</p> <p dir="ltr">In this episode, Jonathan highlights the drawbacks of billing hourly which can reduce your value to just a commodity. Instead, he suggests pricing your services based on the outcome you deliver, thereby providing maximum value to your clients.</p> <p dir="ltr"> </p> <p dir="ltr"><strong>What you will learn from this episode:</strong></p> <ul> <li dir="ltr" role="presentation">Discover the top reasons behind the shift away from hourly billing</li> <li dir="ltr" role="presentation">Find out the advantages of choosing outcome-based pricing over hourly billing</li> <li dir="ltr" role="presentation">Uncover why positioning your service effectively can have a significant impact on your pricing strategy</li> </ul> <p dir="ltr"> </p> <p dir="ltr"><strong>"Positioning is critically important for any kind of upward lift on your fees."</strong></p> <p dir="ltr"><em>- Jonathan Stark</em></p> <p dir="ltr"> </p> <p dir="ltr"><strong>Topics Covered:</strong></p> <p dir="ltr">01:04 - What got him into pricing</p> <p dir="ltr">03:35 - The problem with having an hourly rate</p> <p dir="ltr">06:11 - Pricing uncertainty in the case of a car diagnostic</p> <p dir="ltr">08:45 - What makes it better charging fixed price upfront</p> <p dir="ltr">10:33 - Why positioning your service is crucial in pricing</p> <p dir="ltr">12:59 - What hourly rate appears to be on the label</p> <p dir="ltr">16:15 - Touching on the 'Experience Economy' [pricing transformation]</p> <p dir="ltr">19:06 - Formula for value or the maximum price</p> <p dir="ltr">21:36 - The best reason to not use hourly prices</p> <p dir="ltr">24:22 - Solving the scope problem with knowing the desired goal</p> <p dir="ltr">29:21 - Jonathan’s pricing advice</p> <p dir="ltr">30:38 - How to con