Too many founders and consultants treat price as an estimate tied to the “market rate.” This mindset leaves money on the table and weakens customer outcomes. My point is simple: evaluate your work based on the value it creates, not what others charge. This change changed my career and can change yours.
The value of the moment clicked
Early on, a client paid me way more than I was used to. At first it was strange. Then the results came in. I saved him real money by dismantling a flimsy plan and helped him avoid costly moves. The fee wasn’t random: it was a good deal for what he kept and earned.
“I was totally worth every dollar he spent on me…it wasn’t about the market rate for me. It was about how much money can I make him?”
This experience got me out of the hourly rate trap. Value, not time, determines price. Outcomes, not inputs, should set the bar. As the founder of Hawke Media, and having built and sold businesses before, this rule has guided the way I sell, lead and serve clients.
The Case for Value-Based Pricing
Market rates are a crutch. They assume that all providers create the same impact. This is not the case. A professional who avoids a $500,000 mistake is worth more than a cheaper novice who misses it.
Customers don’t buy hours. They buy results. Revenue gains, cost reductions, faster time to market, fewer headaches. The price should reflect these gains. If the outcome is important, the price should be too.
Value pricing aligns incentives. When your fees are tied to results, you and your client pull in the same direction. This trust grows over time and develops into long relationships.
“It was a very eye-opening experience that allowed me to develop all of this.”
What this looks like in practice
This is how I envision new projects. Keep it clear, fair and linked to impact.
- Define the outcome: revenue, savings, or risk avoided.
- Estimate the financial impact of this result.
- Price as a fraction of this impact, not in number of hours.
- Set milestones and metrics that everyone agrees on.
- Offer a performance boost if the increase explodes.
These steps help both parties achieve victory before work begins. It also presents you as a partner, not just a supplier with a price list.
But what about “equity” and benchmarks?
Yes, benchmarks can help with consistency checks. And yes, some work is too early to be clearly linked to results. It’s very good. Use a hybrid model: a base fee for essential work plus a success fee when results are achieved. The mistake is to make each transaction a copy of the previous one. Your value is not static, nor are your customers’ issues.
Another reluctance: “What if the customer balks at the price? » Then you haven’t made the value obvious or the project isn’t right for you. Go through math. Show the risk, the waste, the benefits. If it still doesn’t work, continue. Price tells a story. Make sure it’s the right one.
Lessons from the field
As a serial entrepreneur, I have seen this in sales, marketing, and operations. When I helped Ellie.com reach $1 million in four months, the value was clear. The same thinking has fueled Hawke Media’s model: agile teams priced based on the outcome we expect to achieve, not how long we sit at a desk.
The big truth: People pay for the results they care about. If your work changes direction (generating revenue, saving money, or avoiding pain), charge based on that change. If it doesn’t, correct the offer until it does.
A simple challenge
On your next proposal, ditch the time table. State the goal, present the plan, and price a share of the value. Put your costs next to the outcome they support. This gesture alone can improve your offers and your confidence.
Favorable pricing is not a trick. It’s a promise. Deliver more than you charge. Clearly explain the benefits. So stay behind.
Stop asking, “What is my rate?” » Start asking, “What is this worth?” »
Frequently Asked Questions
Q: How can I calculate the value if the results are uncertain?
Model a range: conservative, expected, and best case. Evaluate the price against the conservative case and add a bonus to beat it. Clarity beats perfection.
Q: What if my industry relies on hourly billing?
Use a hybrid. Keep a baseline to cover the efforts, then attach a success fee to the agreed-upon measures. It respects standards while rewarding results.
Q: How can I present this without scaring away customers?
Lead with results. Show the calculations behind the increase or savings. Share examples and set milestones. Trust and transparency earn trust.
Q: What happens if a project has many variables beyond my control?
Define what you own. Evaluate your controllables and set triggers for external factors. Adjust the scope rather than taking risks you can’t handle.
Q: Can value-based pricing work for small engagements?
Yes. Associate the price with a quick win: leads, increased conversions or cost reductions. Modest and clear results are excellent pilot projects for value-based transactions.
