As an entrepreneur in the service industry, you've probably started charging an hourly rate. This seems logical: You get paid for the time you spend on an assignment. But more and more business owners are discovering the benefits of a package rate. In this blog, I explain why switching from hourly rate to package pricing can be beneficial not only for you, but also for your clients.

What is a Package Price?

A package rate is a fixed amount you charge for a particular service or combination of services. Instead of being paid by the hour, you set a flat rate based on the value you provide. This could include an entire project, a specific service or a combination of different services.

Benefits of a Package Price

1. More predictability for you and your client

A package price gives both you and your client clarity and certainty. Your client knows exactly what to expect for a fixed amount, and you know in advance how much revenue you will get from a particular assignment. This avoids surprises and miscommunication about the number of hours worked and ensures a clearer process.

2. Focus on value rather than time

One of the biggest benefits of working with package pricing is that the focus shifts from time to value. Clients no longer pay you for the hours you make, but for the value and expertise you provide. This means you can work more efficiently without feeling like you have to "make hours" to earn enough. You can also offer your client more service without being stuck with the time it takes.

3. Better pricing strategy

Package pricing allows you to better match your services to your client's needs and the true value of your work. You can create packages that appeal to different audiences or different price levels. This makes it easier to earn more without increasing your hourly rate each time, which clients often find less attractive.

4. Reduces timekeeping stress

If you charge an hourly rate, you often spend a lot of time accurately tracking your hours. This can be stressful and time-consuming. With a package rate, you no longer have to worry about accurately recording your time. This not only saves you administrative work, but also ensures that you stay focused on your project and client.

5. Working more efficiently and profitably

When you work on an hourly rate, you may tend to work more hours to earn enough. With a package rate, it's different: The more efficient you work, the more profitable you become. By planning well and using systems and tools, you can work faster and still deliver the same (or even more) value to your client. In other words, you are rewarded for your efficiency.

6. Offer added value to your customers

Package pricing allows you to additional value add to your services. Clients get the feeling that they are receiving a complete offer, rather than paying for individual hours. Consider bundling services or offering an exclusive element within your package. This increases the perception of value and helps justify your prices, resulting in happier customers.

How to Determine a Good Package Price?

Determining a package price can be a bit challenging at first, especially if you're used to billing by the hour. Here are a few tips for determining a good price:

1. Calculate your costs - Consider your fixed and variable costs. This includes both the cost of the resources you need to do your work and your own time investment.
2. Think about the value you deliver - Clients pay you for the value you deliver, not for the time you put in. Determine what the end solution or result is worth to your client.
3. Create customized packages - Create different packages for different needs. For example, a basic package, a premium package and an all-inclusive package. This way you offer customers options within different price categories.
4. Test your prices - Don't be afraid to try out different pricing structures and gather customer feedback. This will help you understand what works and where you can make any adjustments.

Conclusion: From hourly rate to package price

Switching from hourly rates to package pricing can be a gamechanger for your business. It gives you more control, less administrative hassle and gives you the opportunity to communicate your value more clearly to your clients. Plus, it increases predictability for both parties and allows you to focus on what really matters: delivering valuable results.

In this short video, see what this, switching from hourly rate to package pricing, has done for my client Tatjana:

Are you ready to let go of your hourly rate and grow with package pricing?