Switching from charging by the hour to a value-based or flat rate model can dramatically improve your workflow.
Value-based pricing is a great way to boost profits and to keep your value separate from the hours you work. It allows you to charge your clients upfront, creating a business that is more efficient to run.
Take the payment and go do the work. That's it.
Most of the time, I'm not a big advocate of the whole “make one decision and it'll change your life and your business” idea, but this is different. Making the decision to use value-based pricing can literally change the way you do business.
This is one simple financial decision that might revolutionize the way you run your business.
All this month we'll be talking about what this transition looks like. We're going to talk about how value-based pricing can improve your workflow, how taking payment upfront means better cash flow, and how making the change means you might never again need to chase down another client for payment. We will also be covering some software tools you can use to make onboarding clients and taking payments as seamless as possible.
Today, we're kicking things off by talking with publicist, brand manager, and Kaye Publicity Inc founder, Dana Kaye, who made the transition from an hourly pricing model to a value-based model about nine years ago.
In this interview, Dana talks about how she went about making that transition. She talks about how the change affected every area of her business operations and gives us a great overview of the impact that thinking about the administrative costs of pricing your services can have on your business.
Listen to the full episode to hear:
- What inspired Dana to make the transition to a flat-rate, value-based pricing model
- How she loves the story that the data tells and how it helps her make changes in her business
- What kind of impact the change had on her sales, promotional, and client onboarding process
- How switching pricing models allowed her to productize her process in a way that every piece could then become its own defined and repeatable process
- And how the change has had a huge impact on Dana’s confidence as a business owner