Lesson 2: Pricing the Transformation, Not the Time

Let me give you a concept that changed everything for me. Stop pricing

your services based on time. Stop pricing based on effort. Stop pricing

based on what it costs YOU to deliver. Start pricing based on the

OUTCOME --- the transformation, the result, the after-state that your

client experiences because of what you do.

Here's an example. If I help a company generate \$500,000 in new

revenue through better leadership and sales execution, what is that

worth? Is it worth \$5,000 for a two-day training? Is it worth \$25,000

for a four-month engagement? If the ROI is \$500,000, then even \$50,000

is an incredible value. The question is never "what did it cost me to

deliver?" The question is always "what is the client's life or

business worth AFTER this?"

When I sit down with a potential speaking client, I'm not thinking

about how long my talk is or how many hours I spent preparing. I'm

thinking about what happens in that room because of my presence. What

mindsets shift. What decisions get made. What teams get inspired to

perform at a higher level. THAT is what I price.

"Making thousands of dollars for the hour isn't about the hour. It's

about what happens in and after that hour because of what you brought to

it. Value is always about transformation." --- Marques Ogden

Ron Baker and the Value Pricing movement have built an entire business

philosophy around this idea. In Implementing Value Pricing, Baker argues

that time is the worst metric for pricing professional services because

it commoditizes expertise. The professional who solves a \$1 million

problem in 1 hour deserves to be compensated based on the million-dollar

solution, not the single hour of visible effort.

Key Takeaway: Price the transformation, not the time. Ask yourself: what

is the client's world worth after you've done your work? Build your

pricing from that answer.

Reflection Questions:

1\. What is the specific, tangible transformation or result you deliver

for clients? Can you quantify it in dollars, time saved, or other

measurable terms?

2\. How do your current prices reflect (or fail to reflect) the value of

those transformations?

3\. If you raised your prices by 25% right now and focused on

communicating the transformation more clearly, what do you think would

happen? What's your biggest fear about that?

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