Hourly Pricing: The Traditional Approach
Hourly pricing is the most common pricing model for freelancers and small businesses. It’s straightforward: you charge a set amount per hour of work. This simplicity is appealing, offering clients transparency and a predictable cost structure. They know exactly how much they’ll pay for a specific number of hours. For service providers, hourly rates offer a clear measure of their productivity and earning potential. However, the simplicity can mask some potential drawbacks, as we’ll explore later.
Value-Based Pricing: Focusing on Outcomes
Value-based pricing flips the script. Instead of focusing on the time spent, it centers