How can you price your consulting services based on value instead of hours worked?

To price consulting services based on value rather than hours worked, focus on understanding the client's needs and the impact your services will have on their business. Conduct thorough research to assess the value your expertise brings to their specific situation. Offer tailored solutions that address their pain points and deliver measurable results. Present your pricing based on the value delivered, emphasizing the ROI for the client rather than the time spent on the project. Be transparent about your pricing structure and how it aligns with the value you provide

I started working as an Independent consultant after close to a decade of experience in sales and strategic roles, I was focued on value-based pricing since the beginning in order to increase my client-base. Even now when I have retainer clients and long term projects, I prefer to stick with value-based pricing because it's important to understand the goals of client and make sure what they pay is under 10% of what you'll be able to generate for them in terms of money of brand value.

C'est très difficile à faire en réalité. En théorie éco ?a s'appelle le "contrat de travail classique". Il engage sur une quantité de travail fournie, pas sur la qualité dudit travail. La raison invoquée est la difficulté à apprécier suffisamment précisément, lors de la négociation du contrat et donc avant la prise de poste, la qualité du travail qui sera effectivement fourni. Dans certains pays, je pense à la France, le travail à la tache est même interdit. C'est pourtant une forme simple et très efficace de rémunération à la valeur produite. Dans les pays où la force de travail est devenue très majoritairement salariée, on a peut-être favorisé la disparition du pilotage par la valeur. à méditer :)

A simple question will help you identify your unique value proposition : How are you going to change the world ? doesn't need to be a big change, does need to be a change that makes sense to you in the first place, and hopefully also makes sense for your customers :)

euh... je ne suis pas du tout d'accord avec ce qui est dit sur le paragraphe 4. Il y a de multiples manière de fixer un prix, et que vous le croyiez ou pas, le prix n'est qu'une des mesures de la valeur. Vous allez prendre de nombreux critères en compte au moment de la fixation du prix. Ayez connaissance de vos couts réels, mais n'allez pas vous faire des noeuds au cerveau avec des calculs complexes. En réalité c'est beaucoup plus simple, la fixation du prix, c'est le résultat d'une négociation formelle ou informelle entre vendeur et acheteur. Le prix s'établi à l'équilibre qui permet de réaliser une transaction.

Recodar siempre que el valor de un servicio no es el valor que uno cree que le aporta al cliente, sino que debe ser el valor PERCIBIDO POR EL CLIENTE.

En général, les tarifs sont assez harmonisés, c'est déjà un premier indicateur des gammes de prix applicables. A partir du moment ou vous avez créé le désir de recourir à vos services, la négociation devrait être en votre faveur. Néanmoins, si vous avez un procurement en face, des pro de la négo et qui de plus sont détachés du sujets opérationnel et donc moins sujets à des décisions émotionnelles (=valeur?). Déterminez aussi vos stratégies et mettez les en oeuvre. Le prix, vous verrez, parfois c'est un peu magique:) in a good way

Creo que lo más importante es poder cuantificar el impacto productivo que puede tener el servicio, y qué porcentaje de los retornos implica. Con esos datos uno puede construir su propuesta de valor real para el cliente.

In the consulting domain, a value statement is paramount. It directly influences the addressable market and pricing for any consultant. Once the value statement is clear, the next step is to determine the solution's value. With this understanding, consultants can set pricing as a percentage of the solution value. Additionally, factors like technology, tools, manpower, and logistics must be considered for pricing. This approach allows consultants to move away from hourly payouts towards contract-based engagements. It's crucial to also consider the solution's criticality, ROI, additional value, and the long-term relationship aspect.

Consultants offer value and as such, should charge based on value delivered. As a consultant, I try to break down my service into an objective, granular term with its corresponding price, irrespective of the time spent. Consultants can also group services into a package, the same way organizations that make product does. There should be a specific price for this group of service delivered irrespective of time taken.

Understand the Client's Needs and Goals: Begin by thoroughly understanding your client's business, objectives, and pain points. This will help you determine the value you can deliver. Identify Key Metrics: Define measurable outcomes that align with the client's goals. These could include revenue growth, cost savings, efficiency improvements, or other key performance indicators (KPIs). Propose a Value-Based Fee Structure: Present a fee structure that reflects the value of the outcomes you will deliver. This could be a fixed fee based on the value of the project or a performance-based fee tied to the achievement of specific KPIs.

Communicate Value Clearly: Clearly articulate the value proposition of your services and how they will help the client achieve their goals. Use case studies or examples to demonstrate your track record of delivering results. Focus on ROI: Emphasize the return on investment (ROI) your services will generate for the client. Show how the benefits of working with you outweigh the costs. Offer Options: Provide clients with different pricing options based on the level of service or outcomes they desire. This gives them the flexibility to choose a package that best suits their needs and budget.

Negotiate Win-Win Agreements: Be open to negotiating terms that are mutually beneficial for you and the client. This could include milestone payments tied to the achievement of specific results. Continuously Demonstrate Value: Throughout the engagement, consistently demonstrate the value of your services by tracking progress against KPIs and providing regular updates to the client. By pricing your consulting services based on value, you can establish yourself as a trusted advisor and partner to your clients, while also maximizing your earning potential.