Pricing Psychology
If you charge $50 per hour, and you get twice as fast at your job, you just gave yourself a 50% pay cut.
This is the paradox of hourly billing. It punishes efficiency and rewards incompetence. If you are good at what you do, you should never sell your time. You should sell your value.
Clients do not buy "hours." They buy outcomes. They don't care if it takes you 10 minutes or 10 days to fix their website, as long as the website is fixed.
1. The "Anchor" Effect
When a client asks, "what is your rate?", they are looking for a number to compare against other freelancers. If you say "$100/hr," they compare you to the guy charging "$50/hr." You enter a race to the bottom.
Instead, you must anchor the price to the Return on Investment (ROI). If your work will make them $100,000, then a $10,000 fee is cheap, regardless of how many hours it takes you.
2. The 3-Tier Strategy
Never send a proposal with a single price. If you give one price, the client's choice is "Yes" or "No." If you give three prices, the choice becomes "Which one?"
We call this the "Goldilocks" pricing structure:
- Option 1 (The Decoy): A basic package with limited scope. It exists to make Option 2 look like a great deal.
- Option 2 (The Target): The package you actually want them to buy. Perfect balance of value and price.
- Option 3 (The Anchor): A high-ticket VIP package. It makes Option 2 feel "safe" and affordable.
3. Banishing the "Why is this so expensive?" Question
You only hear this question when the client doesn't understand the value. Your proposal must bridge the gap between "what you do" and "what they get."
Don't write "Website Design." Write "Conversion-Optimized Architecture that captures leads 24/7." The first is a commodity. The second is an asset.
The Upgrade
Stop letting clients dictate your worth based on a clock. Shift to value-based pricing and watch your income detach from your time.