Tim Dietrich

Custom Software Developer

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Follow-Up to The Art of Value Interview

Back in October, I was interviewed by Kirk Bowman for his awesome Art of Value podcast. I was honored that Kirk asked me to do the interview, and a bit nervous as well. I enjoyed the conversation, and learned a lot about value pricing in the process.

Changes That I've Made

Since the interview, I've made a lot of fundamental changes to my business, and many of them are a direct result of the conversation that I had with Kirk (and some of his other episodes as well). While I am still billing by the hour, it's clear that the conversation had an impact on me and how I've chosen to run my business. (Thanks, Kirk!)

Here are a few of the changes that I've made...

I've pulled way, way back on doing custom software development. My focus is on helping people use the FileMaker platform to create solutions - instead of developing solutions for them. It's a subtle, but profound difference, and it alone has had a huge, positive impact on the business.

Another big change that I've made is that I now charge for requirements analysis. As I mentioned during the interview, I realized that I could no longer afford to give away this valuable service. During the interview, there were several points that Kirk made that drove this point home. Again, this has made a huge difference in terms of the profitability of my business. I'm now billing for a service that provides a lot of value to clients - and best of all, they love the service!

My prices are now published on my Web site, and available for all the world to see. I've found that this helps to pre-qualify prospective clients, and helps them to understand the types of services that I offer (and how I work).

Next Steps

I'm still making big changes to my business. For example, I've recently begun offering consulting for Evernote, and I'm in the process of learning LiveCode so that I can develop other types of solutions (and offer SaaS and native apps).

Has my position on value billing changed? Sort of. If you look at the way I'm pricing my services, you'll see that I am trying to move towards what I call packages. Many of those packages are hourly-based, but ultimately I would like to get away from that. So I guess you can say that my goal is to move to the value pricing model.

In a previous blog post I wrote, "I think that if anyone can convince me to give Value Pricing another try, it's Kirk." That certainly turned out to be true.

If you are billing by the hour and considering making the switch to value pricing, I encourage you to explore Kirk's podcast and follow him on Twitter.