Pricing on value instead of hours
Submitted by neil on Fri, 2012-01-13 09:27
A number of years ago I took a client named Alex out to lunch. As is typical, I asked how we could be better. He paused for a moment; thought and delivered the best advice I've ever received from that question. "I don't care about your hours" was his response. He went on to explain how we always estimated in hours how long the work would take. While he appreciated having a metric to measure value. He didn't really have a frame of reference to truly validate the reference. If he knew what it took to build websites, he wouldn't be seeking companies like ours to do it for him.
So we've been talking for several months about the next phase of our lucidus.net site. It had been around for more thanĀ a year and was looking a bit long in the tooth. Moreover, it was on Drupal 5 and needed to be brought current. However, as with every cobbler, our children were not getting new shoes when customers were ready to pay.