Kirk Bowman, Art of Value
Kirk joins us to talk about how to price our services! Ever wonder how to price? Did you know your hourly rate is a barrier? Where you aware how you sell is indicative of the way you sell? Take your business to the next level with value pricing!
The four steps of Value Pricing:
1. Realize you create value!
2. Discover value from the customer’s perspective (ask great questions)!
3. Create options (magic in the value of 3)!
4. Price those options (be intentional about your pricing)!
FYI – No podcast link just yet…
In August 2009, I was the advocate for hourly billing (ironic now) for a panel discussion on estimating and billing at the FileMaker Developer Conference. Another developer on the panel was an advocate for value pricing. He said, “If you bill by the hour, there is an artificial limit on your income.” My internal reaction was “Hell no!“
I spent the next 3 months studying value pricing. Then in November, I made a public commitment on the FileMaker Talk podcast to switch from hourly billing to value pricing with MightyData, my software company. Then I hired a value pricing consultant to help me make the switch.
My first value pricing proposal was for a custom healthcare application. After identifying the value that the project would create for the customer, I doubled the price I would normally have charged and won the business.
Within 12 months, I made the switch to value pricing with all my customers. Our revenue increased by 56% the first year. The next year, our revenue increased by 79%. And, I have never looked back.
Also, a huge THANK YOU for listening today’s show!
Thanks to RonaldJenkees.com for the awesome music!