For example, let’s say you made $70,000 last year. Someone asks you how much a website costs, you tell them $4,000, and you charge them $4,000 regardless of the time or cost involved. One way of determining your hourly rate is to reverse engineer your last salary. Commit to raising your hourly rate by at least 10-20% by the first of January 2020. A pricing strategy where you charge clients per hour of work. At this point, you have gathered enough information to formulate an action plan. If you have a product that customers will continually renew or update, you’ll want to consider a captive pricing strategy. What better time than now? 10. Very rarely do we run across a firm that follows one pricing strategy 100% of the time. Raise your hourly rate. By Sayali Dighe. A firm that is generally fixed-fee may charge by the hour for some services (most often for services like catch-up, clean-up, and GL conversions). And no one is going to give you the green light to raise them — you must do so yourself. After months of grueling work, you finally finish a difficult engagement. Read more: Fixed pricing vs. Probably not. Profit margins. The second of these simple models is project-based pricing, which can be used in tandem with the hourly model. Firms generally utilize two or more strategies, depending on the situation. Once you have a better understanding of your labor times for each job you take, you can move into more complex models. Project-based or 'flat-fee' pricing is the most common model. Hourly billing. You’ve got a few options: Pricing Option #1: Hourly (so you do your work, get paid, and you’re done) You can charge an hourly rate, where your client pays you by the hour. Christof identified 10 pricing strategies … This pricing strategy involves charging a relatively high price over a short period of time when a new, innovative, or much-improved product is launched into the market. First, let’s talk about the pricing strategies you can use to price your coaching services. Hourly billing. The success of this method is dependent on accurate time-tracking on the job. Hourly Pricing Strategy. It was a difficult job, but both you and your client are happy with the quality of the work. A perfect example of a captive pricing strategy is seen with a company like Dollar Shave Club. Even though hourly rates aren’t ideal, they are often the foundation of your pricing strategy. Captive pricing. Hourly pricing is usually the pricing model most freelancers start with, and it might be the best option for you, or it might not. Pricing per hour lets you gauge how long certain tasks will take you while getting paid for it. Hourly Billing vs Value Pricing: How to make your pricing strategy work for you. The goal with skimming is to “skim” off customers who are willing to pay more to have the product sooner. 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