Pricing Fuck Ups. Ep28. Charging hourly makes you profitable by protecting you from scope creep. [part 1] Lessons from the wrong side of pricing.

The belief

A flat fee puts you at risk of unprofitability. It will give the client the freedom to do and undo whatever they want. “We have to protect ourselves from scope creep. Charge hourly.”

  1. You were never, really, trying to help your client get what they want (an outcome or transformation). You were trying to fill in work that would make sense to you — and the result was never a priority. If it worked, fine. If it didn’t, not your fault. 🤷‍♂️
  2. You never unveiled the value your client was after. You only worked on the deliverable. On their self diagnosis.

Approach

It’s centered around the nominal cost to your client. This is the rate (how much the input ‘Time’ costs) and we’ll see how many hours (quantity) it’ll take only at the end.

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Rod Aparicio

Rod Aparicio

Strategy Designer for Indie Consulting Firms