The difference between charging $75/hr and $300/hr for the same AI work? Pricing strategy.
The Pricing Mistake Everyone Makes
Most consultants price like this:
- "How many hours will this take?"
- "What's my hourly rate?"
- Hours × Rate = Price
This is wrong. Here's why:
If you build an automation that takes 10 hours and saves the client $100K/year, charging $75/hr means you made $750 for creating $100K in value. That's a 0.75% capture rate.
Value-Based Pricing Framework
Price based on the VALUE delivered, not time spent.
The Formula
Project Price = Annual Client Value × Capture Rate × Confidence Multiplier
Where:
- Annual Client Value = time saved × hourly rate of saved time × 52 weeks
- Capture Rate = 10-20% of year-one value (industry standard)
- Confidence Multiplier = 0.7 (new to this type) to 1.3 (done it 10 times)
Example
- Client saves 20 hrs/week at $50/hr loaded cost
- Annual value: 20 × $50 × 52 = $52,000
- Capture rate: 15% = $7,800
- Confidence: 1.0 (done similar work)
- Project price: $7,800
Compare: 40 hours × $75/hr = $3,000 (time-based). You're leaving $4,800 on the table.
The Three-Tier Model
Always present three options. Research shows 60-70% of buyers choose the middle option.
| Tier | What's Included | Price Range |
|---|---|---|
| Quick Win | 1-2 core automations, basic training | $3K-$5K |
| Full Suite | 5-8 automations, training, 30-day support | $10K-$20K |
| Premium | Everything + custom agents + 6mo support | $25K-$50K |
Rate Cards by Service Type
AI Strategy Consulting
- Half-day workshop: $2,500-$5,000
- Full AI roadmap: $5,000-$10,000
- Quarterly advisory: $3,000-$8,000/month
Implementation Services
- Single automation: $3,000-$8,000
- Suite (5-8 automations): $10,000-$25,000
- Custom AI agents: $15,000-$40,000
Ongoing Support
- Maintenance: $1,500-$3,000/month
- Optimization: $3,000-$5,000/month
- Embedded advisor: $5,000-$10,000/month
Negotiation Scripts
When They Say "Too Expensive"
"I hear you. Let's look at this from an ROI perspective — the automation we're discussing saves your team approximately [X] hours per week. At your team's loaded cost, that's $[Y] per year. The investment pays for itself in [Z] months. After that, it's pure profit."
When They Want a Discount
"I can definitely adjust the scope to fit your budget. If we focus on just the top 2 highest-ROI automations at $[lower price], you'll see results within the first month. We can always add more once the initial ROI is proven."
When They Compare You to Cheaper Options
"You'll find people who charge less. The difference is in the ROI methodology — I track actual results, guarantee specific outcomes, and include training so your team is self-sufficient. My clients average 2.7x return in year one."
Industry Multipliers
Not all industries pay the same:
| Industry | Rate Multiplier | Reasoning |
|---|---|---|
| Finance/Banking | 1.4x | High compliance, high value |
| Healthcare | 1.3x | Regulatory requirements |
| Legal | 1.3x | Billable hour savings at $300+/hr |
| Marketing Agencies | 1.0x | Standard |
| Retail/E-commerce | 0.9x | Lower margins |
| Non-profit | 0.7x | Budget constrained |
The Complete System
My full pricing system includes:
- 50+ rate card templates by industry and service type
- Proposal templates with built-in pricing calculators
- Negotiation scripts for every common objection
- ROI calculators that make value-based pricing easy
- Contract templates with scope protection clauses
AI Consulting Pricing Bible — $97
What's your current consulting rate? I'll show you how to double it with value-based pricing. Comment below.
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