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Value-Based Fees: How to Charge - and Get - What You're Worth

Alan Weiss · 3 HN comments
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Amazon Summary
In this thoroughly revised edition of his classic book, Alan Weiss shows how consulting fees are dependent on only two things: value provided in the perception of the buyer and the intent of the buyer and the consultant to act ethically. Many consultants, however, fail to understand that perceived value is the basis of the fee, or that they must translate the importance of their advice into long-term gains for the client in the client's perception. Still others fail to have the courage and the belief system that support the high value delivered to clients, thereby reducing fees to a level commensurate with the consultant's own low self-esteem. Ultimately, says Weiss, consultants, not clients, are the main cause of low consulting fees.
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Hourly rates undervalue consultants. It is a simple price based on quantity that we place on the front of customers, and have nothing to do with value, even more with relationship.

There is an awesome book about that. [1] It tells you how to set the right price and the right relationship with a customer. The philosophy is: firstly to show them the value you will provide, secondly to be able to set the right price, and thirdly the fusion of both with the contract. At the end, it is not a question to set an hourly rate and count the hours; it's about how much value you can give them, and set the right price. Then consultants build a contract with rules that reflect that (and protect them).

You have a lot of explanation inside with different chapters. It is a must read for me; even just the chapters that explain each ways to set price are a gem. You can easily adapt it to any business.

It is also similar to an post on HN some weeks ago. [2]



Do you know of any good resources for getting started with value billing, especially for web design/development? We mainly build websites for small/medium sized businesses, and I anticipate needing to do a lot of education/selling on a possibly unfamiliar pricing system. I'm aware of this book aimed at consultants: but I'm not sure how well that will apply to my situation.
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