Why Charging By the Hour Could Be Costing You More Than Money

9 Apr 2023 · 1 min

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Two web designers both charge £50 per hour, but one takes twice as long to finish the same work. Hourly rates punish speed and skill. Switch to fixed pricing instead: you can raise rates two to four times in 30 to 60 days without doing different work.

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One of the most common mistakes I see business owners making with their pricing is charging by the hour. So let me give you an example of this. If you had 2 web designers, for example, both charging £50 an hour, web designer one maybe has only just started, they're a bit of a beginner, and actually the job takes them twice as long, and the results might not be as good as web designer number 2, who is more experienced and been doing it for longer. But if they're both charging £50 an hour, say, and the first one takes 20 hours, and the second one who's more experienced takes 10, why does the person who is more experienced and better get penalized for charging same hourly rate. When you shift away from charging by the hour, the financial upside can happen very quickly. In as little as 30 to 60 days, you can immediately be selling the same service productized tomorrow if you wanted to for 2, 3, 4 times the price. Productize your service.