Should You Stop Charging by the Hour?

Welcome to the second edition of the 8 Simple Steps, Business Results Done Simply, bi-weekly newsletter...

Summer is flying by, as usual. With half of 2022 gone, I find myself revving up and preparing for a big push to 10x my goal -- to directly and indirectly impact one small business owner a day to thrive and survive. So far, I am ahead of schedule, but I don't leave anything to chance when it comes to business, especially in today's landscape.

Whether I am making a difference as your instructor and mentor or with content on my Linkedin & Facebook Live series, speaking events, social media articles and posts, and this newsletter, the purpose is to make sure you have what you need to have a business that stays in business.

Hourly Pricing May Be Costing You Money...

Pricing for profit is a science?that?requires a very thoughtful approach, allowing you to cover your overhead, get paid what you're?worth, and make a profit for emergencies and scaling.

There's a constant?debate among business people as to whether you should charge by the hour or not for your services. Here's a quick review of the pros and cons so you can decide if it is right for you.?

The pro?to hourly billing is that it is the simplest pricing strategy to create (technically).

While I am all about simplicity, charging by the hour could be costing you money and customers.

Consider the following cons to hourly pricing:

?? The perception of being too expensive – sticker shock (customers do not understand your value and/or the complexity of the work)

?? Client fear of overpaying/no control (not trusting that you will stay within the hours you?promised to deliver?the results they want)

?? Intensive record keeping (for both of you)

?? Pay is capped by the number of hours you work (you need to work more hours to make more money)

If you are charging by the hour and struggling with landing contracts and clients, paying your bills, or?making a profit,?reevaluate?the strategy and consider one of the following pricing alternatives:

?? Bidding out and charging by the project (top best practice)

?? Bundle?your services in packages

?? Value-based pricing (top best practice)

?? Retainer agreements

?? Pay-for-results

Whichever one you choose, implement it because it's best for your business, not because it's working for someone else or it's all the rage. Getting your pricing right is too important. It dictates your profitability and sustainability.

Is Entrepreneurship Still Hard...?

I hear it all the time, starting and building a small business is soooo hard. I have said it several times in my life too. It took a while but I discovered that it doesn't have to be hard.

It has to be methodical and simplified. You have to have access to a village of support who have walked the journey and understand how to excel in it. You don't need to know everything in business, only what works. Focus on what works and the wins you are having (even small ones are big).

And please seek out assistance beyond Google. ?? It makes all the difference. In fact, those entrepreneurs who aligne themself with a mentor are 5 times more likely to start a business and 87% are still in business in the first year. Considering that 2739 businesses fail every day, this data is powerful. Having a mentor is a game-changer.

If you are unsure what works, feeling overwhelmed with the process, or not happy with the direction of your company, let's chat. If I can't guide you in the right direction, I will find someone who can.

Join Me Every Week...

If you are a small business owner, just starting, struggling, or want to scale stronger, join me on Thursday's at 5:00 pm EST for Why Are You An Entrepreneur? The Trials and Triumphs.

I feature rockstar entrepreneurs across all industries and stages who authentically share their journey, words of wisdom, best practices, and inspiration. Succeeding at entrepreneurship takes a village. Your village is here.

And if you are an entrepreneur who would like to be a featured rockstar too, please fill out the application and email it back to me at [email protected] for consideration.

Complimentary Gift...

Words matter, especially in marketing. In fact, the right words can work magic when trying to influence your audience. Sometimes it's hard to find the right one to use in your message.

Not anymore. Scan the QR code for 100 Marketing Words That Convert Customers.

Thank you for your continuous support. I appreciate you.

Keep it simple.

Maureen Edwards

Founder, 8 Simple Steps

About the Author

Maureen Edwards is an award-winning branding and marketing expert with 25-years’ experience in the craft. She is a 2x award-winning inventor and business strategist who has created 6 profitable companies from conception to commercialization. She is a keynote speaker and national instructor.

As the founder of 8 Simple Steps, she works with entrepreneurs to remove the overwhelm, mistakes, and complexity of building, managing & scaling their business by implementing a proprietary blueprint that has generated $50 million in revenue. Her strategies and thoughtful tactics demonstrate record high growth and profits.?You can contact her at goldfish@8simplesteps or her website to discuss how easy entrepreneurship can be.