Value Pricing instead of Hourly Billing with Jonathan Stark.

Value Pricing instead of Hourly Billing with Jonathan Stark. He shares his entrepreneurial journey, and his thoughts and tips on adopting value pricing and abandoning hourly billing for services.

[Learn more about Jonathan Stark]

Jonathan Stark

Jonathan Stark is a former software developer who is now on a mission to rid the world of hourly billing. He is the founder Jonathan Stark Consulting, the author of Hourly Billing Is Nuts, the host of the Ditching Hourly podcast, and writes a daily newsletter on pricing for independent professionals. Jonathan is also currently offering the VALUE PRICING BOOTCAMP.

In his first year as a solo consultant, he doubled his income by ditching hourly billing for value pricing. He has over a decade of real-world experience successfully applying value-based theories to his own consulting work and that of 100+ developers he has counseled. These days he routinely command an effective hourly rate of $2000+ per hour.

The unconscious acceptance of hourly billing as the best and only option for selling services is a collective hallucination that literally keeps him up at night. In fact, he considers it my mission in life to rid the earth of hourly billing.

Jonathan lives in Providence, Rhode Island.

The topics and questions addressed in this episode include:

  • You studied music in school. What where your life plans back then?
  • What led to focusing on value pricing and launching Jonathan Stark Consulting?
  • Why hourly billing or day rates are so bad?
  • How do I know which projects are profitable and which aren’t if I’m not tracking my time?
  • If I’m paying employees (or contractors) by the hour, don’t I have to bill my clients by the hour to make sure I’m not losing money?
  • What are the alternatives to hourly billing?
  • Please share an example of how a service provider can propose and win with value pricing.
  • How to I start the transition from hourly to value pricing?

Episode Host: Henry Lopez is a serial entrepreneur, small business coach, and the host of this episode of The How of Business podcast show – dedicated to helping you start, run and grow your small business.


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