At Northeast Dreamin, one topic definitely caught my attention.
More people started to realize that if AI can implement something in minutes that would have taken a human hours, how does hourly billing work?
Clients are not dumb. They know you’re using AI.
Some people mentioned their clients have asked for a reduced rate or a reduced estimate. Some acknowledged the problem but don’t know how to answer. Some have already made the shift away from hourly.
If you’ve been a reader of mine for a while, you’ll know I’m an advocate for fixed pricing. What you bring to the table should never be measured by the amount of time you spend.
Instead, a price should represent the value you bring to your clients. And there are at least five ways to provide a fixed price for your work:
- Product
- Productized service
- Managed service
- Advisory retainer
- Value-based pricing
The takeaway
While consultants and agencies who bill by the hour now need to reduce their rates, I’ve been able to maintain my prices.