I want to start by saying that there’s absolutely nothing wrong with billing clients by the hour. It’s clean. It’s simple. It’s respectable. There’s absolutely no judgment in this post.
Experienced consultants will tell you that as you take on new clients and shed the old, transitioning into a value-based pricing strategy will have you making more money in less time.
(Sometimes, a LOT less time and a LOT more money.)
The one service industry that has mastered this better than any other?
The wedding industry.
If you’ve ever planned a wedding, then you know exactly what I’m talking about. From the flowers to the hairstylist, prices for anything associated with the word “wedding” always seem way more over-the-top than they should be.
Here’s why: folks in the wedding industry know that this is the most VALUABLE day of your life.
They aren’t just selling you a white dress or tailored suit.
They’re selling you the most significant outfit you’ll ever wear, and one that will live in photographs forever, to be viewed by generations of relatives to come.
They aren’t just selling you a cake.
They’re selling you a symbol of marriage that reflects your personality, taste and (for some) status displayed for and enjoyed by the most important people in your life.
They aren’t just selling you flowers and event decor.
They’re selling you a magical setting that will impress your guests and set the tone for the most important day of your life.
THIS is the essence of value-based pricing.
Value-based pricing means that you’re being paid not for the 25 minutes it took you to come up with that brilliant idea…
…but rather for the 25 years of experience that allowed you to come up with that brilliant idea in such a short amount of time.
At its foundation, value-based pricing is based on the desired end-results, not the process or time it took to get there.
It’s about getting rewarded for being experienced, talented, efficient, accurate, well-connected and wise.
When you feel in your bones that you’re ready to level-up into value-based pricing, be sure to download our Pricing Playbook which walks you through all pricing strategies, including (you guessed it) value-based pricing.
And remember: your pricing is a constant evolution, so be kind to yourself. You’ve got this!