Sent by Jonathan Stark on June 2nd, 2017
Over the the past couple of days y’all have convinced me that there are some legitimate uses for tracking time internally.
I stand firmly behind my original assertion that time tracking is an ineffective way to calculate profits and - bigger picture - should definitely not be used to set prices.
If you insist on tracking time, please be very sensitive to the possibility that it is seeping into your pricing decisions.
It is very VERY hard to break the mindset of hourly billing. Hanging onto time tracking is often an indication that you (or your organization) have not made the shift.
The next time you have to write up a proposal, be honest with yourself about how you calculate your price.
Are you TRULY basing your price on the client’s perceived value?
If not, hourly thinking is probably seeping in.
P.S. The launch of my upcoming private mentoring program is imminent. Each qualified participant will be entitled to six months of unlimited 1-on-1 access to me by email, phone, fax, or carrier pigeon. Participation will be limited to 10 people and it looks like it will sell out at the introductory price of $3500. Click here to add your name to the early announcement list -> Yes, add my name to the list!
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