Some time ago, I read Breaking the Time Barrier by Mike McDerment of FreshBooks and Donald Cowper. The book describes (among other things) how freelancers and the self-employed can unlock their true earning potential by focusing on value instead of charging by the hour. It is written by Mike McDerment (from FreshBooks) and Donald Cowper, and can be downloaded from the FreshBooks website, so make sure that you check it out (I am not an affiliate and have no financial stake in his website).
To follow are seven mutual benefits of exploring value with clients from Breaking the Time Barrier, which I hope to achieve in building my business:
- Creates trust. Getting to know more about your client’s needs inspires trust that you care about them and their needs, and that you know what you are doing in your business.
- Fosters alignment. It ensures that you are on the same page with your client. Start by determining where they are now, and where they want to go. It helps you to identify their main problems (by asking them) so that you can find solutions specific to them. Ask clients about their goals so that you can help them to achieve those goals.
- Helps clients better evaluate vendors. The process of creating value helps the client to determine who will deliver value rather than focus on price. This enables the client to get more value for their money.
- Frames solution as investment, not an expense. Taking about prices focus on the cost of the service, while talking about value provided focuses on the return on investment. Clients prefer to invest in something that will provide value.
- Inspires action. Focusing on value gets the client to envision their goal, which makes them eager to proceed with your solution. They will act quicker with you to get results.
- Lets client make informed business decision. Provide the client with several choices and costs so that they can choose the right solution for them. They choose where to go and how much to pay to achieve a specific solution.
- Establishes a trusted partnership. The client gets to experience the impact of your work. Creating real value for the client makes you a trusted partner, and they will turn to you again when needed.
Breaking the Time Barrier is written as a real-world situation, following the story of a designer who is having trouble getting ahead in his business. He meets a successful designer who teaches him the benefit of exploring value with clients, and how to unlock his true earning potential. It’s an easy and enjoyable read.
If there are any eBooks that you’d like me to read and summarize for you here, or give my thoughts on, let me know – contact@davidgargaro.com.
David Gargaro - The Editor's Desk 
David, I agree charging based on time creates a feel that the job will be rushed. Clients will pay more if you show them how valuable you are.
LikeLike