Issue 03

Five ways to improve profitability when value pricing

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Written by Jared Armstrong

As value pricing becomes a popular way to charge for services, it’s critical to make sure your pricing is right. Jared Armstrong from MinuteDock talks to XU Magazine…

With value pricing you’re charging the customer a fixed price for a set of services One of most important thing to remember when coming from time-based billing is that your inputs (time) are no longer guaranteed to have a constant profit margin. Where before you may have made a margin of $60 per hour, now your margin on an hour of work could be $1000, or it could even be negative. You don’t want to be losing money, so we need to make sure that it’s closer to the former!

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About the author

Jared Armstrong

Jared Armstrong is the Founder & CEO of MinuteDock, the top-rated time tracking software on the Xero Add-on Directory.