The Value Of Your Value: How To Elevate Your Pricing And Move From Hourly Wages To Outcome-Based Wealth
When you charge for outcomes, people invest in your solutions and results—and these have nothing to do with how many "hours" you put in.
Dear Friend, Subscriber, and Category Pirate,
Do you know how much you’re “worth”?
If this question makes you tense, it’s because value (especially your value) is a highly emotional topic.
The thing is, your value—and your customer’s, client's, or employer’s reaction to your value—says more about them than it says about you. Yet, people are scared to increase their prices or ask for a higher salary or more stock because they think it’s a personal reflection of their worth.
But it actually reflects your customers, clients, and employers.
Do they have the budget for what you want to charge or don't they?
If they don't have the budget, they're not going to be a good fit for you. If they do, working with them will be a helluva lot easier. And if they can create net-new budget for you, you’ve found someone who truly sees the value of what you do.
In this mini-book, pricing is going to get personal.
You’re going to learn why and how to value (and price for) the outcomes you generate.
Not only is this relevant for negotiating your salary, bonuses, or commissions if you’re working a regular 9-5 job, but it’s also important if you’re a solopreneur, consultant, coach, writer, creator, or anyone whose pricing is determined by charging for an hourly rate or a deliverable. Because you might currently charge the equivalent of $100/hour or $1,000/hour for your time. But if you charge for outcomes, instead of hours, you can charge the equivalent of $10,000/hour or even $100,000/hour.
We know you (might) have doubts.
We also know that you’re valuable beyond what you believe yourself to be, which is why you should charge for it!
So grab a drink and chair—and come up on deck for different pirate thinking. To think about it more broadly, this is about how you monetize you. And if you’ve read the Power of Outcomes mini-book and realized you consistently generate high-impact outcomes for others, you deserve to be fairly compensated for the value you help create.
We Pirates have helped each other price based on outcomes, and we want to help you do it too.
First, let’s talk about value.
The Value of Your Value
Everything you value, you've been taught to value—and taught to value in a particular way.
When you go to the grocery store and hand the cashier a Benjamin, you walk out with groceries you believe to be “equal in value” to what you paid. That’s because everyone agrees that the green-colored pieces of cotton folded in your wallet have meaning and value. It’s what we’re taught to believe. And it works because we all agree. (That’s the only reason money works. It’s a made-up construct for value exchange with no intrinsic value.)
But value is dynamic.
It can, and does, change.
Pastor Evan Mawarire, a Zimbabwean pastor and democratic activist (and perhaps the most courageous mission-driven leader we know), described what it was like to grocery shop during hyperinflation in his country. He said you would stand in line to buy eggs and other basic groceries with enough money to pay for your food. But by the time you got to the checkout counter, you no longer had enough money for the food because inflation increased so rapidly.
In reality, nothing has intrinsic value.
But most people see value (and therefore, money) very differently.
They look at an iPhone and say, “Of course, this chunk of metal, glass, and microchips is $1,200 worth of value.” No, it's not. That price is the perceived value that we’ve been taught to “see” by the clever Category Queen of smartphones, Apple.
Can you really “see” the difference between these two phones?
If you’re a regular consumer (or a sea-faring pirate visiting shore), it’s impossible to understand why one is worth $1,199 of value and another is worth $899 of value. But you immediately “see” the $300 difference if you’re an Apple or Samsung Superconsumer. In fact, it would be painful to trade your metal chunk for the other metal chunk.
That pain is acute and powerful.
So powerful that it directly impacts the perceived value and, ultimately, the pricing.