Time is Just the Wrapper Your Service Comes In
Episode 53 | Live with the Pricing Lady (Thursdays 15.00 Central European Time)
Time-based pricing: yeah or nay?
One of the things that holds many service providers back in their pricing is the idea that the value of their services is directly proportional to the time it takes you to deliver the service.
Here's what I say..."Time is just the wrapper your service comes in."
Think about it when you buy milk do you buy it for the carton? When you buy pens, do you purchase it because of the packaging comes in? Of course you don't.
It's the same with your services. Yes, there are advantages to certain types of packaging, but that's secondary in the buying thought process. Time-based pricing isn't the best model for many businesses but it's used because it's seems simple.
In this episode of Live with the Pricing Lady I dig into this a bit more. l talked about:
- the disadvantages of time-based pricing
- how to know if it what's right for your business, and
- what it's going to take shift from time-based pricing.
Enjoy the episode.
Here are the highlights:
- Here are the highlights:
- 0:58 How it came to me
- 3:56 Price related to you, not them
- 4:44 They sound expensive
- 6:01 Commodity-like
- 7:11 Efficiency
- 9:54 When can it be used
- 13:32 What to do
- 19:10 Remember this
Great quotes from the Pricing Lady in this episode:
"I asked the questions. How do you perceive time in relationship to your price? Is that why people are buying from you or are they buying from you for another reason?"
"You want the focus to be on the value that you bring."
"Once people perceive what you do as a commodity, then you are left trying to fight on price that's not what we want for you."
"...time isn't going to be the basis for your pricing, but it is going to be the basis for you to understand your own efficiency."
"One way you can start making that shift is by putting more strategic work in with what you do. Then you can charge differently for that."