5 ms·

As a counter point, i would argue that if you're billing on an hourly rate, you're limiting your earning potential as there's only so many hours in the day and

As a counter point, i would argue that if you're billing on an hourly rate, you're limiting your earning potential as there's only so many hours in the day and a client will compare you to others in your industry if you charge by the hour. I'll continue to beat the drum of value based pricing as patio11 does too. Deliver a project that brings the client £10,000 worth of value and charge £1,000 for it and they wont give a shit if it takes you 1 hour or 1 week.

filozynka 13y ago
When you are developing the project further how would you like to value adding new functionalities to the project using the value based pricing model?
- lifeisstillgood 13y ago
  How much value does the new feature bring to the client ? Easy one: increase their conversion rate for google searches of keyword "blue widget" (ie google -> landing page -> credit card charged) by 5%. YOu just made them 5% of their annual turnover. Charge them a lot Harder one: (Anything away from sales is always going to be harder to measure) Implement a simple custoemr support online chat featuire (you know the kind) - allows their support to deal with >1 person at a time, and reduces the "waiting" queue on the phone system to zero. Value? Dunno. Feel around by talking to the VP of customer service or make a judgement call like "not having to hire another five custoemr service people"
  - iktorn 13y ago
    This makes sense when you have a well established business that's tweaking it's processes. Impossible when building an MVP and/or experimenting.
emp_ 13y ago
Since I have trouble with the value extraction thing, something I also put in perspective is how fast can I finish this against the normal standards? If I can work much faster, have a well established codebase will all sorts of shortcuts to the solution, fixed price will allow me to get paid 10, 20 times more with it actually being cheaper than a normal hourly rate would cost. Hourly makes you always take your time, I prefer to be able to compress 10 normal development hours into one as much as possible and have more free time. For too long I have been punished for working fast with hourly rates, I avoid it like the plague. The next step after this are products.

filozynka 13y ago

When you are developing the project further how would you like to value adding new functionalities to the project using the value based pricing model?

lifeisstillgood 13y ago
How much value does the new feature bring to the client ? Easy one: increase their conversion rate for google searches of keyword "blue widget" (ie google -> landing page -> credit card charged) by 5%. YOu just made them 5% of their annual turnover. Charge them a lot Harder one: (Anything away from sales is always going to be harder to measure) Implement a simple custoemr support online chat featuire (you know the kind) - allows their support to deal with >1 person at a time, and reduces the "waiting" queue on the phone system to zero. Value? Dunno. Feel around by talking to the VP of customer service or make a judgement call like "not having to hire another five custoemr service people"
- iktorn 13y ago
  This makes sense when you have a well established business that's tweaking it's processes. Impossible when building an MVP and/or experimenting.

emp_ 13y ago

Since I have trouble with the value extraction thing, something I also put in perspective is how fast can I finish this against the normal standards? If I can work much faster, have a well established codebase will all sorts of shortcuts to the solution, fixed price will allow me to get paid 10, 20 times more with it actually being cheaper than a normal hourly rate would cost. Hourly makes you always take your time, I prefer to be able to compress 10 normal development hours into one as much as possible and have more free time. For too long I have been punished for working fast with hourly rates, I avoid it like the plague. The next step after this are products.