You’ll find that when you charge the same hourly rate, your monthly income will go down because you’re performing the work faster. You’ll learn shortcuts and build automated systems. Income decreases as your skills improve: As time goes on, you’ll be able to perform your work faster because you’ll develop your skills. People can wrap their head around what they’re getting because there’s a direct connection between time and pricing. It’s straightforward to bill for because of its linear model.Įasy to bill: The billing process for hourly pricing is straightforward and simple to complete via an invoicing system.Įasy for clients to understand: Your clients can look at your invoices and timesheets to see exactly what work you did, how long it took you, and what your hourly rate is. The final number is what you bill.Īlways get paid for your time: If you do the work, you get paid. However long it takes you to do your work for someone, you multiply the number of hours completed by your hourly rate. You have a flat price that you charge per hour. Hourly pricing is pretty self-explanatory: It’s what you charge for your services based on an hourly rate. When you feel right about your prices, it’s easier to talk to people about them. You know what your value is, and it’s not because of what somebody else told you. Intentional pricing is setting your prices from an authentic self-led place, which means that you know precisely why you’re charging your current rates. If it’s hard for you to talk about your prices, you haven’t made intentional pricing decisions. You’ve felt hesitant to put your rates on your website or Facebook page.You’ve felt afraid to say your rates out loud.You’ve felt embarrassed about your prices.Does any of the following scenarios sound like you? When you set your prices from a reactive place, it doesn’t come from a grounded, confident place. You feel like something isn’t right, but you’re not quite sure what it is (intuitively know that pricing is off but not sure why).You’re conscious of reactive pricing, but actively avoiding it (out of sight out of mind).You’re aware of your reactive pricing and actively working on it (taking action).
When setting their prices, most people are in one of three phases with their pricing: Internal reactive pricing is the byproduct of your limiting beliefs about money, money wounds or traumas from the past, and ancestral or generational trauma around money. External reactive pricing tends to be practical, while internal reactive pricing is emotional. Internal reactive pricing is based on our internal beliefs about value and worth around money. While it’s not a bad thing to listen to the advice of others, your best friend, neighbor, or favorite blogger doesn’t know the unique details of your business. There’s an outside force influencing their pricing decisions. They’ll do a bunch of research, look at their competitors, or a consultant will tell them how much to charge. This is what most people do when they first set up their pricing model. Those are the two types of reactive pricing.Įxternal reactive pricing is setting your prices based on factors external to you. Instead of being proactive with your rates, you’re reacting to external and internal factors. What you’re probably doing at the moment is reactive pricing. The first thing you want to do when you set your price is to be intentional and the first step to being intentional with your pricing is to be proactive about your pricing instead of reactive. Join me every Wednesday 12pm PST on good ‘ ol Facebook for the next episode of The Andi Smiles show!ĭon’t want to remember things (‘cause- ugh- things)? Get a reminder when I go LIVE by clicking here and I’ll send you a message via Facebook Messenger right when the shows starts (plus you’ll have the replay link in your pocket!). packages, breaking down the pros and cons of each, and talking about who should go hourly and who should price their offerings using packages. If you’ve been trying to figure which pricing model is best for you, wonder no more! I’m talking about hourly pricing vs. You’re still figuring out which one is the best for your business because it’s really hard to get a straight answer around here! You’ve heard about package-based pricing.
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