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My Value Pricing Story
In August 2009, I was the advocate for hourly billing (the irony) for a panel discussion on estimating and billing at the FileMaker Developer Conference.
Another developer on the panel was an advocate for value pricing.
He said:
If you bill by the hour, there is an artificial limit on your income.
My internal reaction was “Hell no!”
I spent the next 3 months studying value pricing.
Then in November, I made a public commitment on the FileMaker Talk podcast to switch from hourly billing to value pricing with MightyData, my software company.
Then I hired a value pricing consultant to help me make the switch.
My first value pricing proposal was for a custom healthcare application. After identifying the value that the project would create for the customer, I doubled the price I would normally have charged and won the business.
Within 12 months, I made the switch to value pricing with all my customers.
Our revenue increased by 56% the first year.
The next year, our revenue increased by 79%.
And, I have never looked back.
