Jonathan Stark — How Much Should I Charge Clients?

The author of Hourly Billing is Nuts, Jonathan Stark, joins us to about charging clients what your worth or, what could be more beneficial, charging what the work is worth to your customers. This episode of Non Breaking Space Show is sponsored by: SVG Summit — A full-day, virtual UX design conference on SVG that you can attend online on February 15th. Free recordings with registration at SVG Summit. Use discount code NONBREAKINGSPACESHOW for 20% off. CSS Dev Conf — Conference dedicated to CSS and its super friend technologies like JavaScript, Sass, NPM, and more. A limited supply of Early Bird Tickets go on sale soon. Register now! UX Design Newsletter — A weekly free newsletter containing a collection of tutorials, articles, and videos about frontend design and development, plus tips on how to bring better engagement to the multi-device world curated by Christopher Schmitt. Feed.Press — Hosting and feed support provided by Feed.Press. Sign-up today and try FeedPress on a 14-day trial (no contracts or commitments). Use promo code NBSP during checkout to get 10% off your first year. Financial Times Mobile Strategies for Credit Unions Jonathan Stark Triumph of the Nerds New Book “Hourly Billing is Nuts” Hourly Billing is Nuts on yCombinator Devchat with Jonathan Stark WP Tonic with Jonathan Stark Freelance Transformation Demystifying Pricing with Jonathan Stark Art of Value Pricing Power - Positioning eliminates the billable hour Value pricing bootcamp Jump to a conversation on… 4:01 Mobile strategy and credit unions 7:02 Credit unions need to attract a younger market 8:02 Host’s first job was in IT department of a credit union 8:30 Talk about “Hourly Billing is Nuts” book 9:40 Any project is going to have at least 3 parties involved. 10:50 The longer it takes the more it costs, hard to guarantee customer satisfaction with hourly billing 11:20 It’s almost impossible to guarantee customer satisfaction with hourly billing 12:50 Problems of hourly billing, as a programmer it’s hard to indicate your value by number of lines of code. 15:01 What made Jonathan think that hourly billing wasn’t the best way to bill 7:18 This is like a cancer inside our business. 17:40 Even streamlining hourly there is still bureaucracy left over because you are measuring the wrong thing 18:15 You can’t make more than $140,000 a year 19:20 It can work if you’re nailing your estimates every time 20:20 If you’re not ready to fire somebody, you’re not ready to hire anybody 21:05 How do you grade tests? How long you take or how many answers you get right? 23:05 How Jonathan started using value pricing; it was always about hours, then he tried out value pricing, income doubled 25:15 Value pricing is using a fixed bid instead of hourly price 28:03 Plug in that can be used for a project instead of building from scratch 31:55 How to dip your toes into the idea of stopping trading time for money 32:20 Create code libraries, invest in efficiency 38:00 Jonathan only does scope projects not the actual coding. But he will guide the coders. 39:40 3 categories of why - Why do this at all? Why now? Why me? 42:30 Use the clients words in your proposal. 43:00 Set price 1/10th of the business value 44:01 Give client a reason why you are more valuable than someone else, not just price 44:50 Jonathan has been using value pricing for 10 years 45:20 Book came out in July 2016 46:01 Side projects that Jonathan does; a product ladder 48:50 You can hire me to do the project or you can buy a video I made that teaches you to complete the project 49:50 You now have a pipeline for leads by having a book 51:01 Since you sold products before, you can inform them of your new projects later 52:50 Words of advice by Jonathan Stark; don’t jump in all at once and test this strategy first; take it slowly 54:30 How to purchase “Hourly Billing is Nuts” 55:50 How to contact Jonathan