Pricing Strategies: Hourly Rates (#02)

[@rdahi808]

value pricing wisdom and application unpacked in this 13 minute nugget.... thanks

[@MikeGastin]

Thanks, Rey!

[@luislugo4006]

I am just starting my own consulting business and I was lost about pricing strategies, thanks for sharing this videos

[@MikeGastin]

Awesome! All the best with your new venture.

[@inprestige]

Great food for thought. unfortunately value based pricing model has a limited application and has little relevance with it comes to B2B transections specially in a non service based business.

[@MikeGastin]

Yes, you're right. I do think smart marketers will incorporate insights on value gained through consumer/customer research into their pricing. I do think there is room for the value conversation in non-service B2B transactions. In fact, these happen all the time. Why does a company pay millions for an ERP? It's just software, but clearly it can help the company save/make millions more than its cost. Even so, you bring up a good point and I do agree in principle.

[@RKastle]

Great video Mike!

[@MikeGastin]

You're deep in the back catalog, Rich! Thanks for the compliment. I gotta admit, I hate looking at these oldies ... what a goof I was. Haha. (The fact is, I'm still a goof.)

[@gibsonmastermind]

Value Based Pricing

[@MikeGastin]

Value-based pricing is my favorite way to go!

[@gibsonmastermind]

@@MikeGastin I was in a sales meeting few days ago. The client asked what makes you different? Before that i was giving project based service which can be replaced. But now i changed everything. Now I focus on solving the actual problem instead of just pitching my core service. Btw I'm 16. Just a kid who's challenging the status quo. Doing everything to reach my goals

[@MikeGastin]

@@gibsonmastermind That's awesome! If you're starting off focused on solving problems and creating value, you're already way ahead of most veteran service providers. Keep up the great work and please keep me informed on your progress. 👊🏼

[@pingukutepro]

Well I don't think minimum wage works had a choice tho.

[@ЕвгениГеоргиев-т1я]

i Charge by the project.

[@MikeGastin]

Cool. So, how do you develop your project pricing? Do you estimate how many hours it will take and base your price in time, or do you try to figure out the value to your client/customer and charge accordingly?

[@ЕвгениГеоргиев-т1я]

@@MikeGastin The later one. I try to stay away from the hour based model for the same reasons you talked about.

[@MikeGastin]

Awesome!!