Today,

We're going to talk about one of the hottest, hottest topics for any self-respecting entrepreneur 🥁🥁🥁....

We're going to talk about rates, specifically the big question: should you charge by the hour or by the value? (🔥)

Who better to inspire the content of this blog post thanAlan Weiss and Blair Enns? These two great gentlemen 👯‍♂️ well known in the consulting world have decades of experience in the entrepreneurial world where they have helped thousands of professionals set their rates and make money like jaja.

Maybe you think 👇 

💬 "Rolala, it's true that my ends of the month are not always easy, I feel like my rates are not high enough, one day it will change but for now I don't dare to increase them..." 💬

As you'll see, we're going to give you our Happy.guide to help you set your rates and maximize your profit!

We'll give you the tips and secrets that these experts have shared to help people succeed in their field

Oh yeah, we almost forgot! We're also going to use ChatGPT's expertise to enrich our content and give you a little extra boost to make your job easier (😺📚)

And that, of course, for more success and profitability (💰💪)

So grab a little vanilla Rooibos, sit back, and let's go kiki, we'll explain everything 🤓

You ready? Let's get it on 🚀

Here is what we will see together

1. Who are Blair Enns and Alan Weiss and what is their background?
2. What is the difference between hourly and value-based pricing, and what are their characteristics?
3. Why have a solid Pricing Strategy? The 5 benefits of creating pricing that matches your value
4. Blair Enns and Alan Weiss' 7 golden rules for setting your rates and maximizing your profits
5. The Happy.5-step guide to setting your rates like a PRO, based on the teachings of Blair Enns and Alan Weiss
6. 5 questions to ask yourself to find out if hourly or value-based pricing is right for you
7. Our 3 tips to set your rates in order to live serenely from your business
8. How to use ChatGPT to optimize your pricing strategy (concrete example)

Don't feel like reading? (even though this article will only take you 19 minutes to read, watch in hand⌚)

Watch the YouTube video: Setting your rates: by the hour or by value? 7 tips from Blair Enns and Alan Weiss (& ChatGPT)

1. Who are Blair Enns and Alan Weiss and what is their background?

1. Who is Blair Enns?

1. Blair is like the Rocky Balboa of the business world
2. He started at the bottom and climbed the steps one by one to become a champion
3. He started his career as a graphic designer and quickly discovered his passion for marketing
4. He founded his marketing consulting agency in 2002 and has since helped hundreds of clients grow their businesses

Here's where to find Blair Enns:

• Website : https://www.winwithoutpitching.com/

2. Who is Alan Weiss?

1. Alan, on the other hand, is a bit like the modern-day Dumbledore, powerful and legendary
2. He has been in the consulting industry for over 40 years and has written dozens of books on the subject
3. He is considered one of the world's leading consulting experts and has advised Fortune 500 clients as well as governments and non-profit organizations
4. We let you imagine, the size of the guy...

Here's where to find Alan Weiss:

• Website : https://alanweiss.com/
• Instagram: https: //www.instagram.com/alanweissphd/

2. What is the difference between hourly and value-based pricing, and what are their characteristics?

1. What is hourly pricing?

1. Hourly rates are based on the time you spend working on a project
2. No matter how good your work is or what results you get
3. Be aware that if you bill by the hour, you may spend too much time on non-productive tasks or be underpaid for quality work
4. In short, you sell your time for money...

2. What is value-based pricing?

1. In contrast, value-based pricing is based on the quality and impact your work will have on your client
2. If you charge by value, you can highlight the results you bring to your customers, differentiate yourself from the competition and maximize your earnings

3. What is the difference between these two types of pricing?

1. Hourly pricing is a simple and easy choice, but it doesn't take into account the value you bring to your clients
2. Value-based pricing is more complex to set up, but it allows you to focus on the quality of your work and to get a fair compensation for your expertise

To give you a concrete example, let's take the case of Grant Cardone 🕶️ :

1. Before becoming one of the most renowned coaches in the field of personal and professional development, Grant Cardone was a used car salesman
2. However, he quickly realized that to succeed in this industry, he needed to differentiate himself from the competition and create a valuable brand
3. He began sharing his sales and leadership expertise on social media and quickly gained a large audience with his authentic and inspiring content
4. Over time, Grant Cardone has expanded its focus to include online and live coaching, training programs and live events.
5. All his coaching programs have a price that is based on value and not on the hour which allows him to propose offers ranging from 197€ to 12.000€.
6. Today, Grant Cardone is one of the best known coaches in the world, thanks to his value-based pricing strategy

So, if you want to succeed in business as much as Grant, never forget the importance of setting your rates based on the value you bring to your clients.

The 3 characteristics of value-based pricing are:

1. Quality
2. Authenticity
3. Brand image

3. Why have a solid Pricing Strategy? The 5 benefits of creating pricing that matches your value

1. Benefit #1 🤑 : Increase (considerably) your income.

1. You can stand out from the competition and be paid for your expertise, rather than working for an hourly wage that does not reflect the quality of your work
2. You are swimming in your own Blue Ocean ( 🤿 If you feel like taking a dip, we invite you to read our blog post: Complete guide to differentiate yourself from your competitors inspired by the book Blue Ocean Strategy (& help from ChatGPT)
3. Since you have created your own market (// your Blue Ocean 🌊) you are in the heart of an unsaturated market and you can therefore offer your own brand and your own value to your future Customers thanks to a unique product
4. Your prices are therefore calculated according to the value you will bring to your customer and no longer according to the time you take to deliver your product or service
5. You can increase your income by three times (and sometimes even more!)

2. Advantage #2 🤓: Select the right clients for you.

1. By pricing on value, you can afford to increase your margins
2. This can also give you the opportunity to have fewer clients per month
3. And you can therefore afford to select them
4. And if there is a crowd at the gates 🧑👱‍♂️👩🧕🧔🧑‍🦰👩‍🦱👨‍🦳🧑‍🦲👩‍🦲👳‍♀️
5. You can even apply one of the principles to create an irresistible Offer that we saw in a previous article: Roberto Cialdini's scarcity effect principle
6. At the same time, you also attract Clients who need your specific skills and are willing to pay for them
7. And at the same time, you can sort out 🧹 and eliminate Customers who are looking for quality services at a low price

3. Benefit #3 🧐: Become more efficient

1. The Value Based Pricing Strategy allows you to be more productive because it pushes you to focus on creating value for your Clients rather than on costs and time spent
2. This way of pricing will encourage you to look for ways to optimize your production and maximize the quality of your products or services, rather than simply looking to cut costs or increase work time to increase profits
3. You'll find it easier to take a results-oriented approach than a time-oriented one
4. This type of pricing gives you peace of mind, which encourages creativity, innovation and efficiency

4. Benefit #4 😎 : Gain awareness and trust

1. By setting rates that reflect your value, you demonstrate confidence in your work and expertise
2. You position yourself as an expert in your field and show your clients that you take pride in your work
3. And you'll notice very quickly that it's a virtuous circle ⭕ the more confidence you have in yourself, the more your brand image will grow and the more your Offer will gain value

5. Advantage #5 🥰 : Evolve into a sustainable business.

1. You're on your way to a sustainable and profitable business
2. You can focus on projects that have a real impact and avoid working for Clients that are not aligned with your mission and values
3. Thanks to this Strategy, you will be able to save energy by not trying to work with Clients for whom you don't have a "feeling".
4. This will make a long-term vision even more feasible

4. Blair Enns and Alan Weiss' 7 golden rules for setting your rates and maximizing your earnings

1. Rule #1 👑 Never bill by the hour.

1. Billing by the hour does not take into account the value of your work and may underpay you for quality work
2. Instead, bill based on the value you bring to your customers

2. Rule #2 ⭐ Never charge less than you're worth.

1. If you charge less than you're worth, you won't be able to cover your costs and you risk underpaying yourself
2. Set your rates based on the value you bring to your customers and your operating costs

3. Rule #3 🏆: Raise your rates regularly.

1. Your skills and expertise improve over time, and your rates should follow
2. Regularly increase your rates to reflect your value and to maximize your earnings

4. Rule #4 🎷: Invoice based on the benefits you will bring to your Customers.

1. The value of your work is what you bring to your clients
2. Results, savings, quality and overall impact
3. Charge according to the benefits you bring them, not according to the time you spend working for them

5. Rule #5 🪝: Use value-based pricing to set yourself apart from the competition

1. Value-based pricing allows you to stand out from the competition by highlighting the quality of your work and the results you bring to your clients
2. You can charge more than your competitors by offering a superior and unique experience and value

6. Rule #6 🔑 Stay flexible with your pricing.

1. Every project is different, and your pricing should reflect that
2. Stay flexible and adapt your rates according to the project, your clients and your objectives

7. Rule #7 🛎️ : Be proud of your rates

1. Your rates reflect your value and expertise
2. Be proud of your prices and don't lower them to attract more customers
3. Customers who understand the value you bring will be willing to pay the price

Our 3 tips for putting the 7 rules of Blair Enns and Alan Weiss into practice:

Tip #1: Research your competitors

• Look at what your competitors are charging for similar projects and use this information to set your rates
• Make sure your rates are competitive, but also reflect your value

Tip #2: Gain confidence in yourself

• Trust is key to value pricing
• If you doubt or hesitate, the customer in front of you will feel it
• During a customer meeting, try to visualize all the benefits you will be able to bring to him and look him straight in the eyes when you tell him your price

Tip #3: Stay up to date on trends in your industry

• Trends in your industry can influence the rates you charge
• Always be on the lookout for the latest news and trends
• Do not hesitate to participate in seminars, fairs, training courses, ...

5. The Happy.5 step guide to setting your rates like a PRO, based on the teachings of Blair Enns and Alan Weiss

1. Step 1 🫵: Assess your value

1. The first step is to assess your value and determine how much you want to be paid for your work
2. Determine your level of expertise (remember: being an expert does not mean knowing absolutely everything in your field, knowing 20% more than the average is already very good!)
3. Chart your skills, "What do I have on my hands that can make a real difference?"
4. Then determine the results you bring to your customers, "What will they gain by buying my Offering?"
5. Go and spy on your competitors' prices and try to set a slightly higher price by including a significant added value
6. Make a chart of all your expenses and those you could project to have the life you dream of
7. And finally, determine how many projects or how many Clients you want to do per month/year in your ideal to free up time and enjoy life

2. Step #2 🤌 Set your rates.

1. The psychological aspect comes into play in this specific stage
2. When you go to the movies, you'll notice that you often have a choice of 3 "Pop-Corn Menus" 🍿
3. Small-Medium-Large
4. The small one is just the Popcorn - 5€.
5. The medium is the Maxi Pop-Corn + Soda - 8€.
6. The Big One you'll get the Maxi Pop-Corn + Maxi Coke 🥤+ 1 chocolate ice cream🍦 - €14
7. In general (and this is purely psychological), 86% of the population will take the Offer in the middle because for the "small" difference, they choose to upgrade the experience!
8. Then, do the same, propose 3 Offers based on the same product or service and increase with complementary products
9. Therefore, you leave the choice to the customer himself to pay a little more or not depending on the added values

3. Step #3 👋 Communicate your rates

1. As we said, the key word is self-confidence
2. You must be convinced that your offer is worth the price
3. Communicating the value of your product or service to your Customers is also important to create a successful Value Pricing Strategy
4. You need to ensure that your customers clearly understand the benefits, advantages and value that your product or service will bring them
5. It's a bit like making mayonnaise, you have to psychologically make them believe that your offer is irresistible at that price and that they are willing to pay the price
6. What is interesting is that at the end of this second step, you conduct a survey with your target audience to find out how much money they would like to spend on your type of Offer

4. Step #4 💪 Amplify your brand image.

1. Who says value, says brand ...
2. The Customer should be proud to buy your Offer
3. Take care of this brand image because it is largely based on this that you will be able to adapt your Pricing Strategy
4. That's why it's important to establish yourself as an expert in your field
5. In the end, your target audience must feel that you and only you understand them and will be able to bring them this added value and solve their problem

5. Step #5 👉 Be consistent and take the long view.

1. It is essential to set a strategy that is solid and concrete
2. If you change your prices every month, there is a lack of consistency and understanding from your target audience
3. If you change your prices often, it's because you don't trust what you're selling
4. And if you don't trust your Offer and yourself, your Client will trust you even less
5. Don't forget that the customer journey is: KNOW - LIKE - TRUST
6. Without trust, there is no purchase!
7. So set your rates, make sure your pricing strategy is sound and consistent, and apply it over the long term
8. And of course, you can increase them according to the increase of the cost of living, your degree of expertise and without forgetting to take into account the law of supply and demand

6. 5 questions to ask yourself to find out if hourly or value-based pricing is right for you

• 👉 Question #1: What is your value?

Think about your expertise, skills and the results you bring to your clients. If you bring great value to your clients, then value-based pricing may be the best option for you

• 👉 Question #2: How much time do you spend on each project?

If you spend a lot of time on each project, then hourly rates may be more profitable for you

• 👉 Question #3: What is your target market?

If you work with clients who value quality and value, then value pricing may be the best option for you. If you work with clients who have a limited budget, then hourly pricing may be the best option for you

• 👉 Question #4: What is the competition?

If you are competing with other service providers who charge by the hour, then hourly pricing may be the best option for you. If you are able to differentiate yourself from the competition by offering superior value, then value-based pricing may be the best option for you.

• 👉 Question #5: What is your goal?

If your goal is to maximize your earnings and position yourself as an expert in your field, then value-based pricing may be the best option for you. If your goal is to charge quickly and efficiently for your time, then hourly pricing may be the best option for you.

7. Our 3 tips to set your rates in order to live serenely from your business

• ✨ Tip #1: Do your research and take the time to build your Pricing Strategy

Do your research on the rates in your industry. You can find this information online or by talking to other professionals in your field. This will give you a general idea of the rates charged and help you set consistent and sustainable rates

• ✨ Tip #2: Don't sell yourself short.

It is important not to underestimate yourself and not to sell yourself short by setting too low a price. You must consider your value, your expertise and the results you bring to your clients. Don't be afraid to set rates that reflect your true value

• ✨ Tip #3: Be consistent

It is also important to set a solid and consistent pricing strategy. Set prices that match the brand image you have built and stay competitive so that you can make a comfortable living from your business (not especially in terms of price but in terms of value: what "extraordinary" customer experience do you offer for that value?)

8. How to use ChatGPT to optimize your pricing strategy (Example)

Here is a sample question to ask ChatGPT to help you create your Pricing Strategy:

Imagine you are a real estate coach with 10 years of experience and you want to set your rates for 3 types of coaching (small-medium-large), use our Happy.guide in 4 steps which are

Step 1: Assess your value
Step 2: Set your rates
Step 3: Communicate your rates
Step 4: Amplify your brand image
Step 5: Be consistent and take the long view

To conclude,

Now you know what type of pricing is best for you and especially for your business.

As you have seen our Happy.guide is really built to support you and to show your real value and this is what will make the difference in the near future in front of your Customer

Don't forget: quality, authenticity and brand image! Use these 3 characteristics of a solid Pricing Strategy to propel your Offer to the front of the stage.

And our last (and crispest 🍪) Tips for today 👉 Think big!

1. Set rates that reflect your value, but don't limit yourself to modest goals, give yourself permission to dream big and aspire to ambitious goals to maximize your earnings and achieve your wildest ambitions
2. This may mean setting higher rates than you thought possible, targeting more prestigious clients or working on larger projects. By thinking big, you give yourself the opportunity to do amazing things and go beyond your limits
3. Of course, that doesn't mean you have to be unrealistic or out of touch with reality. It's important to stay clear-headed and use common sense, but that shouldn't stop you from aiming high.

You now have all the keys to help you set your rates and maximize your profit!

It's up to you!

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