Embracing Outcome-Based Pricing and Ditching Hourly Billing with Jonathan Stark
Impact Pricing10 Juli 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:

Avsnitt(500)

#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 Feb 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 Feb 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 Feb 31min

Blogcast: AI Can't Own Pricing

Blogcast: AI Can't Own Pricing

This is an Impact Pricing Blog published on December 8, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/ai-cant-own-pricing/ If y...

13 Feb 4min

From $500 to $20,000 a Month: What This Pricing Jump Reveals About Value with Alex Shartsis

From $500 to $20,000 a Month: What This Pricing Jump Reveals About Value with Alex Shartsis

Alex Shartsis is a pricing and go-to-market advisor who helps founders charge what their products are actually worth. He is the CEO of Silverwood and Skyp, working with early- and growth-stage compani...

9 Feb 30min

Blogcast: Pricing AI: Outcome-Based Pricing – The Holy Grail for AI

Blogcast: Pricing AI: Outcome-Based Pricing – The Holy Grail for AI

This is an Impact Pricing Blog published on December 1, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/pricing-ai-outcome-based...

6 Feb 5min

"You're Wrong" — A Friendly Pricing Debate on Buyer Context with Steven Forth and Mark Stiving

"You're Wrong" — A Friendly Pricing Debate on Buyer Context with Steven Forth and Mark Stiving

This episode takes a slightly different approach than the usual Impact Pricing conversation. Instead of teaching a finished framework, Mark brings an early draft of his upcoming book to the table and ...

2 Feb 26min

Blogcast: Credits: A Tool to Reveal Your Value Literacy

Blogcast: Credits: A Tool to Reveal Your Value Literacy

This is an Impact Pricing Blog published on November 24, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/a-tool-to-reveal-your-v...

30 Jan 7min

Populärt inom Business & ekonomi

framgangspodden
varvet
rss-jossan-nina
svd-tech-brief
badfluence
rss-svart-marknad
uppgang-och-fall
bathina-en-podcast
avanzapodden
tabberaset
rss-inga-dumma-fragor-om-pengar
24fragor
rss-kort-lang-analyspodden-fran-di
rss-borsens-finest
rss-dagen-med-di
kapitalet-en-podd-om-ekonomi
borsmorgon
fill-or-kill
rss-veckans-trade
lastbilspodden