Hourly Pricing Versus Fee-Based Pricing

October 2, 2024 / in Brain Food / by Jason Terry

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Hello friends! This week I wanted to give you my perspective on hourly versus fee-based pricing. Especially when hourly pricing doesn’t properly reflect the value that you are providing to your clients. And of course there are many situations where hourly pricing is perfect… but let’s get into it.

I have had many pricing conversations with business owners and clients over the years. Often, the conversation turns to them telling me I should be charging more for my services. Which is interesting when it is a current client telling you that. :)

The Wayback Machine

If we get in the wayback machine to when I was working with an IT support company, we charged $150/hour when we sent our engineers on site to do work. So when I started Blue Gurus, it made sense to me to charge the same hourly rate for half day engagements. Until it didn’t. I realized that from a marketing perspective, what I was charging was a fraction of what other people in my space were charging.

For more than a decade, I have honed my blogging process. And I am very quick with a keyboard. So hourly pricing penalizes me for being efficient. Also, the result of my efforts are that a company is telling their stories on a weekly basis that also push to their relationships on LinkedIn and feed a monthly email newsletter.

Watch the video! :)

In my video, I talk through this as well as comparing pricing to ad spots in the local business journal. I also share a consulting story that I love… knowing the right switches to flip is worth so much. I hope you will take the 6 minutes to watch my video this week and let me know what you think about hourly versus fee-based pricing. I appreciate you being part of my journey. Thank you!!!