How you choose to price your services and accept payments is one of those business design choices that we don’t always make conscious choices about.
But it is a choice that can have a profound impact on your business and how it feels to run it. It just simplifies everything: from your team composition to how you work to even what project management software you use.
We’ve been talking this month about the operational benefits of value-based pricing and upfront payments, taking a close look at how those choices can make your service business way easier to run.
Examining your default decisions about pricing and payments and considering making different choices can really pay off, both in administrative streamlining, but also in your wallet.
Today, we’re going to pull all those ideas together and look at the downstream impacts of making that switch from hourly pricing to value-based pricing.
We’ll look at how it affects your sales process, your proposal process, your profit, your cash flow and, yep, even the other software you might choose to use in your business.
To illustrate my point, we’re going to look at how these decisions have played out in a real business.
My guest today is Rita Barry, the founder of Rita Barry & Co, a relationship-driven company, focused on metrics.
Listen to the full episode to hear:
- Why tying your work to an hourly rate can really start to hurt as you gain efficiency and experience
- Why she uses results as the basis for her pricing structure and why pattern recognition has become one of her most valuable skills
- How value-based pricing allowed her to scale her agency without having to step away from doing what she loved
- Why making the switch to value-based pricing helped her find more joy in what she does!