Transitioning from Time-based Pricing to Value-based Pricing in Agencies

This chapter provides a detailed account of the transition from the billable hour system to value-led pricing in agencies, tracing its origins to the economic challenges faced by clients in the late 20th century. It discusses the limitations of time-based pricing, the misalignment of economic incentives, and the need for agencies to modernize their pricing strategies to stay competitive in the evolving business landscape. The conversation emphasizes the shift towards pricing based on outputs and outcomes, urging agencies to adapt to new business models and innovation to capture the value of services in a changing market.