August 1, 2019
Let’s Talk Branding #49: Jonathan Stark on Value-Based Pricing
Sent by Jonathan Stark on August 3rd, 2019
Are you into podcasts? I recently appeared on the Let’s Talk Branding podcast to talk about value pricing. Here’s the link:
Episode Summary
In this episode, we mind wrestle with Value-based pricing specialist Jonathan Stark. We debunk a lot of myths and take a hands-on approach on how to transition from hourly billing to value-based pricing. After you have listened to Jonathan talk, one thing will be certain: “Hourly billing is nuts!”
Talking Points
- Jonathan’s beef with hourly rates.
- Clients don’t want your time, they want your results.
- Time is the wrong thing to focus on. What should you focus on instead?
- Transitioning your business away from the hourly model and to the value pricing model.
- The big transition: switching your mindset in the sales interview.
- You want some urgency from prospects. Why do they want it now?
- You need to ask them: “why me? Why not someone cheaper?”
- Be confident that what you deliver is the best out there, and simply be confident as a business person.
- Come to them as a peer and know you have control in the conversation.
- You need to be prepared to walk away from any client.
- How you can position yourself to make things easier.
- Always ask for testimonials from happy clients.“
- What is the leading indicator that you think will lead to sales?
- Learn the difference between the strategy and the deliverables.
- Break down every possible assumption in advance.
- How to deal with cashflow problems.
Quotable Quotes
- “It destroys wealth and value creation.”
- “What is their real objective?”
- “My whole life was hours.”
- “They’re expecting to get something back.”
- “That’s just basic hygiene.”
- “Share that out to the world.”
- “They don’t want to know how hard your job is.”
- “This is definitely a million dollar thing for you.”
Are you a podcast fan?
If you’re into podcasts, please hit reply and let me know what your favorite shows are. Work related or not… I’d love to know :-)
Yours,
—J