The basis on which you charge, chosen to align with how you actually create value rather than working against it, and standardized so pricing stays consistent.
The model is a strategic choice, not a default. The wrong one caps your pricing no matter what number you pick. Weigh each model against how you create value and how customers want to buy. A blend is often right.
| Model | Fits when... | Right for you? |
|---|---|---|
| Per unit / per item | Value scales with quantity | |
| Hourly / time-based | Rarely ideal; punishes your efficiency | |
| Flat / fixed fee | Scope is predictable | |
| Subscription / retainer | Value is ongoing | |
| Value-based / outcome | Value is large and measurable |
For service businesses, moving off hourly billing toward flat or value-based pricing is one of the most common and profitable model changes. Hourly billing punishes the very efficiency you have worked to build; the faster and better you get, the less you earn.
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