From Hourly Rates to Bundled Value: The Power of Packaged Pricing

09/18/23 • 14 min

Time based rates or packaged pricing, which is right for your business?
People often start off with time-based rates, it seems relatively simple and straight forward - at first glance. But when you look closer time-based rates can be difficult to work with and they don't actually serve you or your clients well in the long run. Trading time for money does not focus on value or the quality of your expertise. Which is one reason why most people at some point in time will consider shifting to packaged pricing.
But what does it take to package up prices? Is it the right move for your business? What are the advantages and disadvantages of packaged pricing? There are a lot of questions to be explored if you're trying to make the decision whether or not to make the shift from hourly rates to bundled value.
In This Episode:
In this episode we take a closer look at the downsides of time-based rates and the upside or power of packaged pricing. Be sure to listen in and consider what's the best move for your business.
Podcast Highlights

0:00 Intro
2:46 Not Linked to the Value
4:18 Pitfalls of Time-based Pricing
6:57 Unlocking the Power
8:57 Streamlining Offer Creation
10:35 Simplifying Decision-Making
12:10 Wrapping It Up

Episode Link
Join The Fair Price Formula (https://thepricinglady.com/setmyprices) group program and learn how to set prices for your business with more confidence.
Don't go yet. If you're enjoying the show please rate and review. It helps us spread the word to more people and ultimately get more small businesses on the path to sustainable profitability and business success. Thanks for Listening.
*********
Reach Out, Connect or Book a Call with Janene
Get started improving your business. Sometimes it’s difficult to know where to begin. I suggest you Download the the self assessment Pricing Scorecard (www.thepricinglady.com/pricing-scorecard). Get a view of what’s working and what’s not working when it comes to pricing in your business. Figure out where to start making improvements.
Get in touch with Janene. If you’ve got a question that needs answering, a challenge you’re facing or you have suggestions for future topics or guests, let me know. Contact Janene (https://thepricinglady.com/contact/)
Transform your business and life. My business is about helping you build a better business. One that’s profitable and where you can confidently charge for the value you deliver. Let’s see how we can work together. Book a complimentary Discovery Call today! (www.thepricinglady.com/book-a-call)

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0:00 Intro
2:46 Not Linked to the Value
4:18 Pitfalls of Time-based Pricing
6:57 Unlocking the Power
8:57 Streamlining Offer Creation
10:35 Simplifying Decision-Making
12:10 Wrapping It Up

Previous Episode

Overcoming Objections: The Worst Way to Respond to Pricing Objections

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Pricing objections will come, as a founder or business owner it's important to prepare yourself (and your team) for when a client prospect says, "No thank you." Whether it's because it's too expensive or they don't know if they need it or something else, knowing what to do next can feel confusing or even a bit scary. Certainly it can leave you wondering how to respond in the best way possible.
It's not uncommon to feel super confident telling people about your offer, after all that's your thing. You could talk about that all day long. At the same time when it comes to talking about how much people need to invest in your product or offer, you might feel a total lack of confidence. Then compound that with someone rejecting your offer and "Bam!" you're in uncharted territory - nervousness kicks in and it gets harder to know what to say.
My clients often voice concerns about handling pricing objections confidently (some even ask how to avoid them - you can't and shouldn't strive to) and are curious about what arguments they can use to defend their position. And while you do want to understand the value and communicate it well, launching into a defense when you get an objection is not the best response.
This episode was the result of countless questions from people just like you who have found themselves confronted with pricing objections. The urge to defend your pricing is natural, but there's a better way forward.
Join us as we delve into the art of asking the right questions and truly grasping the objections raised by your customers.
In This Episode:
Listen and discover invaluable insights into the skill of handling objections gracefully and strategically. Learn simple techniques to get to the bottom of why they are objecting. Getting curious about their response takes the pressure off you so you can more confidently and uncover mutually beneficial solutions with your customers.
Whether you're a seasoned entrepreneur fine-tuning your pricing strategies or a newcomer seeking guidance, don't miss out on this episode. Bid farewell to the fear of pricing objections and embrace newfound confidence in your pricing journey.
Podcast Highlights

0:00 Intro
1:50 Strategies for Responding
4:13 Unveiling the Real Reason Behind
6:36 Turning Objections into Opportunities
8:02 Wrapping it Up

Episode Link
The Fair Price Formula: https://maven.com/the-pricing-lady/fairpriceformula
*********
Reach Out, Connect or Book a Call with Janene
Get started improving your business. Sometimes it’s difficult to know where to begin. I suggest you Download the the self assessment Pricing Scorecard (www.thepricinglady.com/pricing-scorecard). Get a view of what’s working and what’s not working when it comes to pricing in your business. Figure out where to start making improvements.
Get in touch with Janene. If you’ve got a question that needs answering, a challenge you’re facing or you have suggestions for future topics or guests, let me know. Contact Janene (https://thepricinglady.com/contact/)
Transform your business and life. My business is about helping you build a better business. One that’s profitable and where you can confidently charge for the value you deliver. Let’s see how we can work together. Book a complimentary Discovery Call today! (www.thepricinglady.com/book-a-call)

Next Episode

Flexible Pricing: How easy-going should your pricing strategy be?

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Do you find yourself wondering how flexible your pricing should be?
In the world of business, pricing isn't merely a numbers game—it's an art of balance. And finding that delicate balance between flexibility and complexity can make or break your business.
On the one hand it's great to try and meet the specific needs of each individual client, as each one is unique. But flexibility isn't always the best thing for you, your business or your customers. It's more complex a decision than just meeting the customers needs - it's more strategic that.
And hold on, what about the downsides of working in this way? How does it impact your ways of working in your own business? And what downsides are there for clients? Yes, there are some.
Well if you've asked yourself these questions, you're in the right place.
In This Episode:
In this episode of Live with The Pricing Lady, we'll explore what you should consider when you're deciding the appropriate level of pricing flexibility in your business. Here's a glimpse of what you can expect to discover:
We look at the:

The Advantages: Learn how pricing flexibility can lead to tailored solutions, scalability, and agility in meeting your customers' unique needs.
The Trade-Offs: Explore the downsides of pricing flexibility, including customer confusion, perceptions of unfairness, and profit erosion.
Actionable Strategies: I share practical tips to help you strike the right balance in your pricing approach. From segmentation and clear tiers to modular pricing and value-based flexibility, there are several options to help you choose the level of and mitigate the downsides of flexibility.

Whether you're new to the business world or a seasoned pro, this episode will help you think through this important aspect of your pricing strategy.
Podcast Highlights

0:00 Intro
2:41 Advantages of Flexible Pricing
4:12 Trade Offs that come from Flexible Pricing
8:19 Effective Pricing Strategies
14:02 Transparency and Simplicity
16:02 Wrapping it Up

Episode Links
Join The Fair Price Formula (https://thepricinglady.com/setmyprices) group program and learn how to set prices for your business with more confidence.
Don't go yet. If you're enjoying the show please rate and review. It helps us spread the word to more people and ultimately get more small businesses on the path to sustainable profitability and business success. Thanks for Listening.
*********
Reach Out, Connect or Book a Call with Janene
Get started improving your business. Sometimes it’s difficult to know where to begin. I suggest you Download the the self assessment Pricing Scorecard (www.thepricinglady.com/pricing-scorecard). Get a view of what’s working and what’s not working when it comes to pricing in your business. Figure out where to start making improvements.
Get in touch with Janene. If you’ve got a question that needs answering, a challenge you’re facing or you have suggestions for future topics or guests, let me know. Contact Janene (https://thepricinglady.com/contact/)
Transform your business and life. My business is about helping you build a better business. One that’s profitable and where you can confidently charge for the value you deliver. Let’s see how we can work together. Book a complimentary Discovery Call today! (www.thepricinglady.com/book-a-call)

Live with The Pricing Lady, the Podcast - From Hourly Rates to Bundled Value: The Power of Packaged Pricing

Transcript

Janene: Hello and welcome to Live with the Pricing Lady. I am Janene, your hostess, and I am so excited to be here with you today. Now we are getting back into the swing of things after our summer break. And today I want to talk about a topic that has come up a lot recently. Actually, I've gotten this question quite a bit.

Now in the past few weeks, I've given like three or four workshops, and I've delivered two webinars. There's been a lot of Q and A sessions and a lot