{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"Ep 306 Hourly Billing Is Nuts: How to Boost Profits with Value Pricing with Jonathan Stark","description":"Hourly Billing Is Nuts: How to Boost Profits with Value Pricing with Jonathan Stark   Find Rocky Lalvani @ www.ProfitComesFirst.com or email him at rocky@profitcomesfirst.com   Most business owners don\u2019t realize the hidden cost of hourly billing. It\u2019s not just that it can feel annoying. It\u2019s that it can cap your income, misalign incentives, and create friction and distrust with clients\u2014especially when estimates blow up.   In this episode of Profit Answer Man, Rocky Lalvani sits down with Jonathan Stark, former software developer and author of Hourly Billing is Nuts, who\u2019s been on a mission since 2006 to help experts stop selling time and start pricing for outcomes. Together they break down why hourly billing creates an \u201cartificial ceiling,\u201d how fixed pricing changes the client relationship, and how to protect yourself from scope creep by tying everything back to outcomes.    In This Episode, You\u2019ll Learn: Why hourly billing creates an artificial ceiling on income (even at high hourly rates).  Why clients hate hourly projects when estimates go wrong\u2014and how it destroys trust.  How fixed pricing rewards efficiency (and why hourly pricing financially punishes smart shortcuts).  The difference between selling inputs\/deliverables vs selling the outcome.  Why most people think \u201cvalue pricing won\u2019t work in my industry\u201d\u2014and what\u2019s really missing (the \u201cwhy\u201d conversation).  How to handle \u201cscope creep\u201d by using the agreed outcome as a filter\u2014and parking non-essential requests.  A practical bridge for hourly billers: offering an estimate vs a higher fixed-price option to shift risk and provide certainty.    The Big Takeaway: Hourly billing isn\u2019t just a pricing method. It\u2019s an incentive system\u2014and it often incentivizes the wrong things. When you price by the hour, you cap your upside and risk creating tension with clients when projects run long. When you price for outcomes, you align incentives so both sides win when the work gets done faster (without sacrificing quality), and you create a healthier, more trusting relationship.    Bio: Jonathan Stark is a former software developer who is on a mission to rid the world of hourly billing. He is the author of Hourly Billing Is Nuts, the host of Ditching Hourly, and writes a daily newsletter on pricing for independent professionals.   Links: Website: valuepricingbootcamp.com LinkedIn: https:\/\/www.linkedin.com\/in\/jonathanstark\/ YouTube: https:\/\/www.youtube.com\/c\/TheJonathanStarkShow   Conclusion: Hourly billing feels normal in a lot of industries\u2014but as Jonathan explains, it often creates an artificial ceiling on your income and puts the client in the risky position of betting on an estimate that may not hold up. That\u2019s when trust erodes, projects get contentious, and both sides lose.  A fixed price (and ultimately value-based pricing) changes the game: incentives align, efficiency gets rewarded instead of punished, and you can protect the work by filtering scope decisions through the agreed outcome\u2014parking anything that doesn\u2019t contribute until after you \u201cdeclare victory.\u201d  If you\u2019re currently billing by the hour, this episode is your reminder that the goal isn\u2019t just to charge more\u2014it\u2019s to price in a way that supports better relationships, better results, and a business model that doesn\u2019t depend on maxing out your calendar.    Ready to stop selling time and start selling outcomes? Explore Jonathan\u2019s work at https:\/\/jonathanstark.com\/ and check out http:\/\/valuepricingbootcamp.com to learn practical ways to move away from hourly billing.    #ProfitAnswerMan #ProfitFirst #ValuePricing #HourlyBilling #PricingStrategy #Consulting #ProfessionalServices #BusinessProfit #CashFlow   Watch the full episode on YouTube: https:\/\/www.youtube.com\/@profitanswerman Sign up to be notified when the next cohort of the Profit First Experience Course is available! Free Copy of the Profit Blueprint Book: : https:\/\/lp.profitcomesfirst.com\/landing-page-page  Monthly Newsletter signup: https:\/\/lp.profitcomesfirst.com\/newsletter-signup Relay Bank (affiliate link): https:\/\/relayfi.com\/?referralcode=profitcomesfirst Profit Answer Man Facebook group: https:\/\/www.facebook.com\/groups\/profitanswerman\/ My podcast about living a richer more meaningful life: http:\/\/richersoul.com\/ Music provided by Junan from Junan Podcast Any financial advice is for educational purposes only and you should consult with an expert for your specific needs. ","author_name":"Profit Answer Man: Scaling with Profit First & Beyond","author_url":"http:\/\/profitanswerman.libsyn.com\/website","html":"