Switched from hourly billing to value based pricing about 14 months ago and wow what a difference

I used to bill by the hour for everything. Web design, content strategy, even quick email replies. I figured it was fair and transparent. But I kept feeling like I was capping my income for no good reason. So I switched to value based pricing, where I quote a flat fee based on the results the client will get. For a recent ecommerce site rebuild I charged $8,500 instead of tracking 40 hours at $100 an hour. The client was happy because they knew the cost upfront and I was happy because I got paid for the value, not the time. Has anyone else made this switch and noticed their profit margins jump?

2 comments

2 Comments

wendysmith17d ago

$8,500 for 40 hours of work sounds like a pretty good deal if you ask me.

brown.susan17d ago

I see what you're saying @wendysmith, but "$8,500 for 40 hours" isn't quite right because that kind of pay usually comes with major trade-offs. Most gigs offering that much lump it into a monthly salary that includes overtime and on-call hours, not just a straight 40-hour week. It's a good headline number, but the fine print usually tells a different story.