Special guest Ron Baker talks about overcoming pricing objections, managing scope creep, safely offering guarantees, and much more.
Today I’ve got a very special episode of Ditching Hourly for you. I'm joined by value pricing pioneer, Ron Baker.
Ron is a recovering CPA who began value pricing in 1989. He’s the author of seven best-selling books, including: Pricing on Purpose; Measure What Matters to Customers; and Implementing Value Pricing. He’s the founder of pricing think-tank VeraSage Institute and a radio talk-show host on the VoiceAmerica.com show: The Soul of Enterprise.
This episode clocks in at nearly an hour - which I realize is longer than usual - but you’re going to want to listen to every single minute of it because Ron drops non-stop value bombs.
Just to give you a taste, here are some of the killer quotes Ron shares:
- “The billable hour takes your focus away from measuring what matters to the customer.”
- “The billable hour delivers a lousy customer experience.”
- “Focusing on the tasks comes at the cost of focusing on the value.”
- “People don’t want to hear about the contractions, they want to see the baby!”
- “Value pricing is a skill like golf or tennis. The more you do it, the better you get.”
- “Don’t ask your client ‘What do you need?’ ask ‘What are you trying to achieve?’”
- “If you prescribe without diagnosis, it’s malpractice.”
- “A professional takes responsibility for creating an outcome, not delivering a series of tasks.”
- “What the client is trying to achieve determines the scope of work.”
- “Time spent in reconnaissance is never wasted.”
- “We have to get over the idea that we are pricing a series of tasks.”
- “Value is not a number, it’s a feeling.”
- “Two options encourages a price decision. Three options encourages a value decision.”
- “It’s a huge fallacy to think that just because you’re giving a fixed price, you’re not scoping.”
- “When would you rather find out your client is unhappy with your price: before you do the work or after?”