Calling time on the day-rate

The pitfalls of time-based pricing

Customers no longer want to buy time; they want to buy outcomes.

Charging a day or hourly rate may be simple, but it has no bearing on what value you’re delivering to the customer.

Time-based pricing penalizes you for speed and efficiency. There’s a conflict of interest because the years you spent honing your skills may mean you can do something very quickly, yet you get paid less than someone who takes longer.

As people increasingly prefer to pay for results and care less about the time you put into it, look for ways to charge according to what your work means to the customer and create a win-win that means successful outcomes for both parties.

Jenny shares more about alternatives to time-based pricing in the podcast episode: How to Price your Facilitation and Coaching Services.