Jonathan Stark talks of realization of the stupidity of the billable hour and his journey to Value Pricing. (jonathanstark.com and expensiveproblem.com) Jonathan assists clients with mobile strategy for consumer brands. Jonathan prior to his own business realized that had to lay off best guy because that is what the timesheet said. Every problem was because they billed by the hour. The endless obsession over hours led Jonathan to his own business and focused on value based pricing.
The cancer is the billable hour. Also need to rid of timesheet.
Get ridding of billable hour leads to a fundamental change in way view services and also a fundamental change in relationships.
Laser focus positioning. It changes the comparison. Focus on outcomes.
Fixed bid – puts risk on us. Hourly billing puts the risk on clients.
Change from every minute goes by making money to every minute losing money.
Perceived as an expert will command a premium. Pick small niche.
2. Target market
3. What you are going to do
4. Why you are different?
Do the translation for them. What keeps them up at night. Expensive problems.
Proposal – should be short. A summary. Provide options.
1. Position your business
2. Transition away from hourly billing
3. Try a productized service.
Twitter – @jonathanstark
Jonathan Stark – www.jonathanstark.com
Positioning Site – www.expensiveproblem.com