November 11, 2025
The Death of Hourly Billing with Jonathan Stark
Ryan and Mike from Eggs! The Podcast to discuss value-based pricing, the pitfalls of hourly billing, and how to create real client satisfaction through understanding value.
Summary from the show notes
In this episode, Ryan and Mike interview Jonathan Stark, a consultant and author, who shares his journey from software development to coaching on value-based pricing. They discuss the pitfalls of hourly billing, the importance of understanding value, and the significance of the ’why’ conversation in client interactions. Jonathan emphasizes the need for a shift in perspective from self-interest to client satisfaction, and he outlines effective pricing strategies, including the use of guarantees to mitigate risk. The conversation also touches on establishing authority in one’s field and the benefits of narrowing focus to become a recognized expert.
Takeaways
- Jonathan Stark transitioned from software development to coaching on pricing.
- Hourly billing can lead to misaligned incentives and poor client outcomes.
- Value-based pricing focuses on the client’s perceived value rather than costs.
- The ’why’ conversation helps uncover client motivations and needs.
- Setting prices based on value can lead to better profitability.
- Offering guarantees can alleviate client concerns about quality and service.
- Establishing authority in a niche can lead to higher pricing and demand.
- Narrowing focus helps in becoming a recognized expert in a field.
- Proposals should offer multiple pricing tiers to maximize client options.
- Understanding customer satisfaction is key to long-term business success.
Chapters
- 00:00 Introduction to Jonathan Stark
- 02:56 The Shift from Hourly Billing to Value-Based Pricing
- 09:31 Understanding Value-Based Pricing
- 12:56 The Importance of the ’Why’ Conversation
- 18:47 Negotiating Prices and Payment Terms
- 25:39 Shifting Perspective: From Self to Client
- 30:42 Creating Customer Satisfaction
- 38:57 Proposals and Pricing Strategies
- 47:49 Guarantees and Risk Mitigation
- 59:52 Establishing Authority in Your Field
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Yours,
—J