Embracing Outcome-Based Pricing and Ditching Hourly Billing with Jonathan Stark
Impact Pricing10 Heinä 2023

Embracing Outcome-Based Pricing and Ditching Hourly Billing with Jonathan Stark

Jonathan Stark is a former software developer who is on a mission to rid the world of hourly billing. He is the author of Hourly Billing Is Nuts, the host of Ditching Hourly, and writes a daily newsletter on pricing for independent professionals.

In this episode, Jonathan highlights the drawbacks of billing hourly which can reduce your value to just a commodity. Instead, he suggests pricing your services based on the outcome you deliver, thereby providing maximum value to your clients.

What you will learn from this episode:

  • Discover the top reasons behind the shift away from hourly billing
  • Find out the advantages of choosing outcome-based pricing over hourly billing
  • Uncover why positioning your service effectively can have a significant impact on your pricing strategy

"Positioning is critically important for any kind of upward lift on your fees."

- Jonathan Stark

Topics Covered:

01:04 - What got him into pricing

03:35 - The problem with having an hourly rate

06:11 - Pricing uncertainty in the case of a car diagnostic

08:45 - What makes it better charging fixed price upfront

10:33 - Why positioning your service is crucial in pricing

12:59 - What hourly rate appears to be on the label

16:15 - Touching on the 'Experience Economy' [pricing transformation]

19:06 - Formula for value or the maximum price

21:36 - The best reason to not use hourly prices

24:22 - Solving the scope problem with knowing the desired goal

29:21 - Jonathan's pricing advice

30:38 - How to connect with Jonathan

Key Takeaways:

"If you sell somebody an hour, you cannot make it more efficient. It takes an hour to deliver it. It artificially limits your income." - Jonathan Stark

"The way I do it [on the scope problem], I don't scope first, I scope last." - Jonathan Stark

People / Resources Mentioned:

Connect with Jonathan Stark:

Connect with Mark Stiving:

Jaksot(500)

What Buyers Actually Pay For (Hint: It's Not Your Product) with Mark Stiving and Rebecca Kalogeris

What Buyers Actually Pay For (Hint: It's Not Your Product) with Mark Stiving and Rebecca Kalogeris

If buyers are predicting the future… and confidence determines when they act… what are they actually paying for? In Episode 3 of the Buyer Decision Series, Mark Stiving and Rebecca Kalogeris explore t...

10 Maalis 13min

Blogcast: Buyers Don't Buy Features

Blogcast: Buyers Don't Buy Features

This is an Impact Pricing Blog published on December 29, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/buyers-dont-buy-features...

6 Maalis 3min

Buyers Buy Futures, Not Features: Understanding the "Let Me Think About It" Moment with Mark Stiving and Rebecca Kalogeris

Buyers Buy Futures, Not Features: Understanding the "Let Me Think About It" Moment with Mark Stiving and Rebecca Kalogeris

Buying isn't logical;  it's predictive.  In this episode, we explore why buyers hesitate, stall, and say "let me think about it" — even when the value is clear. Mark Stiving and Rebecca Kalogeris brea...

3 Maalis 13min

Why Pricing Feels Disconnected from Buyer Behavior (And What We're Missing) with Mark Stiving and Rebecca Kalogeris

Why Pricing Feels Disconnected from Buyer Behavior (And What We're Missing) with Mark Stiving and Rebecca Kalogeris

Before we talk about confidence. Before we talk about willingness to pay. Before we talk about buyer disconnect. We need to question something far more fundamental: What are buyers actually doing when...

2 Maalis 13min

Blogcast: Pricing AI: When Algorithms Replace Buyers

Blogcast: Pricing AI: When Algorithms Replace Buyers

This is an Impact Pricing Blog published on December 22, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/pricing-ai-when-algorit...

27 Helmi 3min

#CLASSIC Why I Teach Pricing: My Journey and Mission

#CLASSIC Why I Teach Pricing: My Journey and Mission

Whether you've been with us since the beginning or you just discovered Impact Pricing last week, this episode is for you. If you're one of our longtime listeners, you know Mark's voice, you've heard h...

23 Helmi 5min

Blogcast: Pricing AI: Three Levels of Value Visibility

Blogcast: Pricing AI: Three Levels of Value Visibility

This is an Impact Pricing Blog published on December 15, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/pricing-ai-three-levels...

20 Helmi 6min

Synthetic Data in Pricing: Trust It, Test It, or Ignore It? with Steven Forth

Synthetic Data in Pricing: Trust It, Test It, or Ignore It? with Steven Forth

Steven Forth is a pricing strategist and AI innovator with decades of experience building value-based pricing models.  As the founder of Value IQ, he blends rigorous pricing theory with emerging AI ap...

16 Helmi 31min

Suosittua kategoriassa Liike-elämä ja talous

sijotuskasti
mimmit-sijoittaa
psykopodiaa-podcast
rss-rahapodi
rss-sisalto-kuntoon
rss-rahamania
ostan-asuntoja-podcast
herrasmieshakkerit
rahapuhetta
sijoituspodi
rss-lahtijat
rss-karon-grilli
oppimisen-psykologia
lakicast
rss-startup-ministerio
rss-bisnesta-bebeja
rss-paasipodi
rss-yrittajan-mindset
rss-viisas-raha-podi
rss-draivi