I participated in a discussion this week on Linkedin about how “our” industry is flawed because of the hourly billing model.
If you have worked at any agency you will have been there. Completing timesheets, justifying billable vs. nonbillable hours, and trying to make it all fit within the budget for the project. As someone who has reviewed those sheets, I can say with complete certainty much of time tracking in an agency setting in nonsense. The exercise of going back through your calendar to try and puzzle what you worked on for the last two weeks is the norm.
On the flip the case for value-based pricing is solid. People shouldn’t be penalized for having built a practice that allows them to be faster and focused, yet we see this over and over again. We all believe this. Yet when you put a flat rate offer on the table there feels like a lack of transparency… We also see quotes at a lower hour count but with higher hourly price tag.
What if we valued thoughtful, focused, skilled work. Planned on delivering outcomes vs. the intervals of time it takes to get there.
I don’t know what that proposal looks like but I am pretty sure that is the wrap I want to read.