Hourly Rate Madness

Carrie Koh: 00:00:31

Hey, true seekers.

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Okay.

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Are you exchanging time for money in that place where you are pricing

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your consulting or coaching offers at an hourly rate and you feel

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like you just can't get ahead?

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You feel like you're constantly in the grind.

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You've basically exchanged your nine to five energy.

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into this entrepreneurial energy that is just as stressful because

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we haven't changed anything, right?

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We haven't changed that nine to five mentality of if we just work longer

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and harder, we'll make more money.

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Right?

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That's just not the case in the entrepreneurial world.

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And so I wanna talk about why we price hourly when it's really

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an old school way of thinking.

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It doesn't serve our clients and it doesn't serve us.

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And so the.

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Old way of thinking is really the current view, right?

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Like 95% of the world thinks an hourly rates.

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You go to the to McDonald's and there's a sign on the door

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for hiring X dollars per hour.

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Even as a healthcare executive, I knew my hourly rate, right?

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That was what was in my contract, and so that's just the normal.

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Run of the mill.

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Easy way to price things.

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But notice, when you're on an hourly rate, let's say you're in a nine to

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five and you're in an hourly rate, does it really matter how hard you work?

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Does it really matter?

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Like let's say you're, You're a house cleaner and you say it's

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X dollars an hour and you know that you are good at what you do.

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You know that your team is fast.

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You know that like you do more in an hour than most people do in an entire

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day, but you're on an hourly rate, so it does not serve you to work faster, and so

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you spend the entire day doing something that you could have done in an hour.

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Now, What that means is we get punished for being better and more efficient

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and getting clients fast results when we are charging an hourly rate

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when we are looking at consulting.

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As a former healthcare administrator, I used to sign for consulting gigs, right?

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Like people would come to me and we'd engage them for a certain

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result, and nine times outta 10, that consulting contract and their.

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Deliverable, whatever that was, would end up on the shelf.

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Like nobody paid attention to it.

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I mean, we had the big presentation, but nothing happened from it.

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And so there was really no incentive for that consulting

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company to make something happen.

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They did their job, they made the recommendations.

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Now it was up to us to implement.

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Right?

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They put in their hourly work and created a deliverable, but

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it didn't change lives, right?

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Because it was.

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The old school way of really thinking about things.

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It's not focused.

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When we look at that hourly rate, we're not focusing on the outcome.

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We're not focused on the transformation.

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We're not focused on the results that we really want.

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We're just focused on how much we are paying per hour and is it in our budget,

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and that does not serve our clients.

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Imagine if I said to you, Hey, give me a hundred thousand dollars today.

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And in 90 days you will have a million dollars in your pocket.

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Would you make that investment?

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I'm guessing you would, right?

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I didn't say Let me work with you for, you know, X number of hours.

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And during that time we will work on this and, and I'll get you to

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this point and we'll do your offer and we'll do all the things now.

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I just said, give me a hundred thousand dollars and by the end of 90

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days you'll have a million dollars.

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It's a good investment.

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You do not care.

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What the hourly rate is.

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Why?

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Because of time compression people pay to get results faster.

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I know that if I'm going to my therapist, there is no incentive for

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them to get me fast transformation cuz I pay every single time.

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Right?

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And so it's the same with any service that is an hourly rate.

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There's no incentive to get your clients faster results when you get

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paid more, the slower that you go.

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And of course we justify that, so it feels good, but why don't we just price

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our offers for the transformation?

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Isn't that a win-win?

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Because we get.

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Paid based on the value of the transformation and our

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people get faster results.

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And when you look at that, I can see over and over the

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examples that are in my business.

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I mean, clients go from zero to 10 K in 30 days, zero to 50 K in 90 days.

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I had one client come to me, With a $500 offer within two days of our

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session, she closed a $5,000 offer.

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Shifts can happen fast, results can happen fast when you price your offer at a place

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that represents the value of the results.

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When we price things at an hourly rate.

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What are we making that mean about how we feel about the results?

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We're probably comparing, probably looking around to say, okay,

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what is everybody else charging?

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I need to be within that range.

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Oh my gosh, what if they say no?

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Right?

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We price based on fear.

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We price based on fear of rejection, and we all do that in the beginning, but very

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quickly you see that when you undervalue or you price your offer based on an hourly

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rate, there's some resentment that's gonna set in because I'm guessing that.

Carrie Koh: 00:06:09

You're really good at what you do and that your clients like mine get

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really fast results and they don't need the amount of time that everyone

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else is telling them that they need.

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They just need a different intention.

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They need a different how they need a different desire point.

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And when we bring our proprietary process into the world and that

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process gets people faster results.

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You are self-sabotaging by undercharging.

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And when we charge out of this fear, like that's the definition of self-sabotage,

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we can't create a price that's going to sell no matter what that number

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is, if we're pricing that out of fear.

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So how should you price your offer?

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We need to really look at and own the value of the r o ROI of our offer.

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What is the results?

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That you sell, like make a list of 20 results that you sell within your offer.

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What is that transformation?

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What is your client feeling believing before they start working with you,

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and what's their life like after?

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Like if you were to follow them around with a video camera, what would be

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different after that transformation And how much do you think that people are

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willing to pay for the speed of results?

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We underestimate our audience all of the time.

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I hear all the time, people don't think that there's high

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ticket people in their audience.

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It's not that there's not high ticket people, it's just that we're not very

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good at articulating the ROI of our offer.

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And when we articulate the ROI of our offer in a way that really taps into

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the truest desire of our client and makes them the hero for investing.

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That's when price doesn't matter.

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But when we are in that hourly rate, like we are in the herd, there is no

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separation between us because even if we offer these massive transformations,

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like if I say, pay me, 50 bucks an hour and I'm gonna show you the soup to nuts

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roadmap to attract five to 10 K clients online, like you won't believe me because

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the value of the transformation does not.

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Match the pricing of the offer.

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And all of that is just our belief in ourselves and our belief in

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our ability to get people results.

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Our belief in that our offer is positioned to give our clients everything they

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need and nothing that they don't.

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And in the old school way of thinking, you know, you hire a consultant, you

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hire a coach, and you get a result at the end of the engagement, but, In reality,

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when we price based on transformation, our people get results within the

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first five minutes of working with us.

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Our people get results at that point of investment.

Carrie Koh: 00:08:52

That happens to me all of the time.

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People say yes to me and suddenly they close a high ticket client

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because they believe they can, because just being in the energy of me who

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has closed, you know, a hundred k a month, like they know it's possible.

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And so, When you get into that position of authority, You see your

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value differently when your clients start getting massive results?

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My clients get life-changing results.

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Yes, the monetary thing is there, but how they view themselves, how they

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view their world, that awareness that comes to them around how they've been

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interacting with their world that has not served them, and they choose

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something different instead, like that's the amazing impact that I get to make

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while helping them grow their business.

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And so really look at why you're priced the way you are.

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Look at that.

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requirement that we all have to belong because if the rest of the

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world is pricing hourly, we are gonna be more inclined to price hourly.

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Why?

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Cuz we have this underlying need to feel safe and to belong and to have

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that safety and security and, and it feels hard to go outside of that.

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It feels like, ooh, we're outside the box.

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And I always say I wanna be outside the box, but do I really?

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Because people are gonna look at me.

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And so this is a choice.

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You don't need to be scared.

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But it's okay if you are, because even in that feeling of

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scared, you get to take action.

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You get to price your offer at a place of transformation, not tactics, not strategy.

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So you guys, if you need help pricing your offer, go to profitable happy ceo.com.

Carrie Koh: 00:10:37

I've got an awesome little freebie for you in there.

Carrie Koh: 00:10:41

As always, hop on over to either my Facebook group, profitable, happy,

Carrie Koh: 00:10:45

c e o, or DM me on Instagram it's Carrie underscore e underscore co.