Internet Marketing – Why quoting an hourly rate can be fatal for your business -2

0 Comments

August 20, 2018

Mark Wickersham (UK):

In this post I want to share why it’s
crazy – even fatal – to quote an hourly
rate. And, to prove it, I’ll give you
three very good reasons.

#2 Hourly rates increase payment pain
This is to do with what behavioural
economists call saliency – or payment
pain.
A good example is from the
taxicab industry. In the old days, when
we jumped in a taxi – a black cab in
London, or a yellow taxi in New York –
we’d sit and, as the journey
progressed, however much we tried to
avoid it, our eyes would be drawn to
the meter.
And, as we watched it
ticking up… up… up… it would create
anxiety.
It would create stress,
because we’d know the journey was
costing us.
Well, that’s exactly what we do to our
clients when we quote an hourly rate.
If you have a meeting with a client, it
should be an enjoyable experience for
them, one in which you add lots of
value.
But, instead of paying attention
to all the benefits you can bring them,
if you’ve quoted an hourly rate they’re
more likely to be looking at their
watch thinking, “Aren’t we done yet?
This is costing me money.”

To be continued

(More of Mark!)

Better pricing = higher profits 
If you have a service business, you can
earn much more from this series.
Also, Mark runs a programme called
Price Consulting, and he teaches
accountants/bookkeepers how to help
their customers with their pricing. 
Thank you for the positive response to
posts on this topic and the action taken.
Please tell your friends!
Those links again:
Effective Pricing for Accountants (book)
The complete guide to menu pricing – NEW!
(video training programme)
How to build a successful bookkeeping
business (book)
How to build a successful bookkeeping
business (video training programme)
Grab them NOW and claim the true income
that you earn!
Price accounting and consulting
services more profitably!
Silvia at IFRSbox.
If you are in finance and not on her
FREE list (WHY NOT?):

WORDWRAP

Use mine free as often as you want!
Over 53% of ALL emails are now opened
on mobile devices, so if your emails
are not optimized for mobile devices,
then you’re missing out BIG TIME and at
risk!
WordWrap is a wonderfully-simple FREE
tool that allows you to wrap your text
so that your emails can be viewed on
mobile devices correctly.
If you would like your very own
BRANDABLE version of this tool, with
YOUR OWN affiliate links and adverts,
then check out the BRANDABLE version.
Click
Get Your Own Brandable Version of
Word-Wrap!
on the page:
or
Use mine free as often as you want!

Leave A Response

* Denotes Required Field