033: Pricing for Profit

“Kill Bill.” Kill hourly billing to be exact. This summarizes the sentiment of investment banker turned CFO-for-Hire and pricing consultant, John Ray. John reminds us that our clients care most about results. Therefore, charging the right price means having a value conversation with your clients to understand how to price. In this episode, John unpacks the psychological factors involved in pricing, validates why pricing is the most important factor in profitability, and explains why you should stop billing your clients by the hour. Listen as he also outlines the process for figuring out your client’s desires and charging a price that aligns with the premium experience you create for them.

Special Guest: John Ray, Founder & CEO at Ray Business Advisors, LLC.

Air Date: February 10, 2019

Resources

Pricing for Profit – John’s blog full of stories and analogies to encourage value-based pricing.
North Fulton Business Radio – John’s weekly radio show interviewing top business leaders and entrepreneurs in the North Fulton, GA area.
The Power of Pricing: McKinsey article on the impact of raising prices by 1%.
Confessions of the Pricing Man: How Price Affects Everything: book by Hermann Simon.
Verasage Institute: a think tank that studies and teaches about “burying the billable hour.”
The Soul of Enterprise: Business in the Knowledge Economy: podcast co-hosted by Ron Baker, founder of Verasage Institute.
Ditching Hourly: podcast hosted by Jonathan Stark. The mission is to “rid the earth of hourly billing.