What Changes Have You Made in Your Business Model?

Short Answer: I’ve shifted from a commission-based model to charging an hourly rate, which enables me to offer more affordable prices, ultimately making clients happier and allowing me to handle a larger volume of projects.

Full Explanation

Previously, my business operated on a commission-based model where earnings were tied to a percentage of the total job value. I realized that moving to an hourly rate system has significant benefits. By charging based on the actual hours worked, I can lower prices for individual jobs because pricing is no longer linked to the total commission percentage. This change not only improves client satisfaction by making services more affordable but also streamlines my workflow and opens opportunities for handling many more projects.

Step-by-Step Breakdown

Identify the old model: Commission-based pricing tied to job value.
Shift to hourly rate: Charging clients based on the actual time spent on work.
Lower pricing: Reduce the cost per job due to the hourly billing format.
Client happiness: More affordable jobs increase client satisfaction.
Increase volume: Ability to work on a larger number of jobs thanks to streamlined pricing and project management.

Real Examples

Though specific examples of jobs are not listed, the practical result of moving to hourly rates is clear: clients benefit from reduced prices, which makes them more willing to engage. Meanwhile, the business benefits by having the capacity to handle more projects efficiently.

Common Mistakes

Sticking with commission rates that lead to higher prices and fewer clients.
Failing to communicate the benefits of hourly pricing to clients, potentially causing confusion or mistrust.
Not adjusting internal workflows to accommodate the new pricing structure, which may limit the intended increase in job volume.

FAQs

Why switch from commission to hourly rates?: Switching helps to lower prices, making services more attractive and enabling increased business volume.
Does hourly billing lead to better client satisfaction?: Yes, because it often results in more affordable prices for the clients.
How does this affect workload?: The change allows handling more projects due to clearer pricing and efficiency improvements.

Key Takeaways

Transitioning to an hourly rate from a commission-based model can reduce prices for clients.
Lower prices increase client satisfaction and demand.
The new model supports managing a much larger volume of work effectively.