The Alternative to Value Pricing for Knowledge Workers

Sally Kohn: Common alternative to value pricing for knowledge workers is to build by the hour. She says in 50% of software projects, estimates are always too low. When it becomes obvious that the price is going to end up being way higher than the estimate, buyer can't decide whether to cut bait or throw away $30,000 worth of work. "You start eating hours because everyone is retroactively landing on a price," she says.