A brief conversational transcript where two speakers discuss shifting from day-rate or hourly billing to project-based and retainer pricing. Key points: need to package services so work can be delegated to contractors/employees, and adopting results-based pricing (charging for outcomes and speed rather than hours) to enable scaling.
What was the mindset behind like? Like, because I've been there too, but maybe talk from your perspective about like, what's the mindset from switching from like day rate to an hourly to like project based and like retainer based. Like, what was that mindset? Like that changed.
I just, I knew I had to, if I was ever going to because there's no way I can hire a contractor and take their hourly rate and then say, say they spend five hours on a project and then I charge the customer my five hour rate because, because I charge significantly more because I'm really fast and I'm good at what I do and it takes less revisions. So I couldn't ever figure out a way that I could actually have somebody else do my work for me. I was just locked into this job, I guess. You know, it was, it was a job I enjoy, but I couldn't ever. I didn't know how to bring on contractors or employees until I could figure out how to package it. And then this is the price and then I can pay.
Well, that's when you switch to results based pricing where it's like, hey, we're, you know, just because we get it done sooner doesn't mean that we should be charging less. I can get you a result quicker. You should actually be paying more for that. They want to pay for a quick result.
