The Ultimate Framework for Solopreneur Pricing

Hourly Pricing is Outdated—Here’s Why

Author

The AI Hustle Lab
December 07, 2024

Reading time: 7 minutes

Greetings Hustlers,

It’s The AI Hustle Lab here—ready to help you escape the hourly pricing trap and scale your income by embracing value-based pricing.

Last week, I spoke with ghostwriters frustrated with undercharging for their expertise. The problem? Hourly rates don’t reward efficiency or expertise. The solution? Value-based pricing—a strategy that focuses on outcomes, not effort.

Today, I’ll show you:

  • Why hourly pricing limits your profitability.

  • How to create premium packages that clients love.

  • A ChatGPT Mega Prompt to confidently price your services.

Let’s dive in.

💡 Hourly Rates Are a Trap

Hourly pricing penalizes efficiency. The faster you work, the less you earn. It also focuses on effort rather than results, which undervalues your expertise.

The Fix: Charge based on the outcomes you deliver.

Example: A ghostwriter transitioned from $75/hour to $5,000 per project by showing how their storytelling increased a client’s conversions by 30%.

🔧 How to Build Premium Packages

Clients want simplicity. Tiered packages make it easy for them to choose, while also highlighting your value.

Here’s a Framework:

  1. Starter Package: One article or blog post – $2,000.

  2. Growth Package: A blog series with SEO strategy – $5,000.

  3. Premium Package: Full brand storytelling and content strategy – $10,000.

Each package builds on the previous one, showing increasing value and making upsells seamless.

🛠️ Pricing Mega Prompt

**Role**:  
You are a pricing strategist specializing in value-based pricing with expertise in helping [insert type of business/service/product here] transition to premium pricing models that emphasize outcomes rather than effort or time.

**Instructions**:  
Create a comprehensive, step-by-step framework to help entrepreneurs or professionals in [insert type of business/service/product] maximize profitability and effectively communicate their value to clients. Include actionable advice and real-world examples tailored to their field. Break down each section into sub-steps and provide detailed explanations to ensure clarity and practical implementation.  

**Steps**:  
1. **Shifting from Hourly to Value-Based Pricing**:  
   - Explain why hourly pricing limits profitability and undervalues expertise in [insert type of business/service/product].  
   - Provide detailed strategies to transition to value-based pricing, such as:  
     - Identifying outcomes clients care about most.  
     - Pricing based on long-term results instead of tasks completed.  
     - Steps to calculate value-based prices (e.g., cost savings, revenue increases).  
   - Share at least two specific examples of businesses in [insert type of business/service/product] that successfully transitioned to this model.  

2. **Identifying and Communicating Value**:  
   - Describe how professionals can uncover their unique value proposition, tailored to [insert type of business/service/product].  
   - Include specific methods to calculate and communicate ROI (e.g., time saved, revenue generated, improved efficiency).  
   - Address how to demonstrate the tangible and intangible benefits of their service (e.g., client satisfaction, reduced stress).  
   - Offer an example script or framework for explaining value to clients during consultations or proposals.  

3. **Creating High-Value Deliverables**:  
   - Provide strategies for packaging services/products to reflect premium value, such as:  
     - Productized service offerings.  
     - Bundled solutions (e.g., initial setup + ongoing support).  
     - Retainer models with high-value guarantees.  
   - Suggest 3-5 tailored deliverables that align with [insert type of business/service/product].  
   - Include a template or example for presenting deliverables to clients in a way that highlights value.  

4. **Building Confidence for Premium Pricing**:  
   - Outline actionable steps to overcome self-doubt and develop confidence in charging higher rates, such as:  
     - Mindset exercises to reinforce the value of expertise.  
     - Scripts for handling objections from clients about pricing.  
     - Practical exercises (e.g., practicing pitches, researching competitors).  
   - Include examples of mindset shifts (e.g., "Clients pay for results, not hours worked").  

5. **Tactical Pricing Techniques**:  
   - Highlight why middle-ground pricing should be avoided and provide alternative pricing strategies, such as:  
     - Anchoring prices with high-ticket packages.  
     - Offering tiered pricing options (e.g., basic, premium, VIP).  
     - Positioning services as either high-value premium or low-cost entry points.  
   - Provide a pricing checklist or formula, including:  
     - Calculating the perceived value of deliverables.  
     - Adjusting pricing based on demand and expertise.  

6. **Leveraging Tools and Technology for Efficiency**:  
   - Identify specific tools, technologies, or systems that [insert type of business/service/product] can use to streamline service delivery (e.g., automation software, AI tools, client management platforms).  
   - Explain how integrating these tools can:  
     - Enhance perceived value.  
     - Improve efficiency.  
     - Allow for scaling while maintaining quality.  
   - Provide examples of how other professionals in [insert type of business/service/product] have used these tools to boost profitability.  

**End Goal**:  
The framework should empower users to confidently transition to value-based pricing, increase earnings, and communicate their worth effectively to clients. It should also address common challenges and provide specific, actionable steps tailored to [insert type of business/service/product].  

**Narrowing (Constraints)**:  
Ensure the framework is actionable and practical, avoiding overly theoretical explanations. Incorporate real-world examples, templates, scripts, and checklists where applicable. Tailor all advice to the unique needs and challenges of [insert type of business/service/product].

🧩 PROMPT ANATOMY

1. Role
Defines the AI's persona and expertise, such as a pricing strategist focused on value-based pricing. This sets the foundation for the AI’s approach.

2. Instructions
Explains the task in detail, specifying the framework to create, the advice to include, and the overall goals.

3. Steps
Outlines the sequential actions the AI should take to deliver comprehensive results. Each step contains detailed guidance for execution.

4. Constraints
Limits the scope to ensure outputs are actionable, practical, and relevant. It avoids theoretical advice by emphasizing real-world examples and templates.

5. End Goal
Clarifies the objective of the task: to help users confidently transition to value-based pricing while maximizing earnings and effectively communicating value.

📐 How to Use the Prompt

  1. Define your specific task or industry for the prompt.

  2. Specify how many steps or ideas you want the AI to generate.

  3. Include comparison criteria for ideas or frameworks.

  4. Review the AI’s output and refine as needed.

📤 Example Output 📤

Target Audience:

Busy introverts starting their first weekend solopreneur side hustle using AI.

1. Shifting from Hourly to Value-Based Pricing

Why Hourly Pricing Limits Profitability:

  • Caps income at available working hours, creating a ceiling on earnings.

  • Focuses on time, not expertise or results, undervaluing years of experience.

  • Attracts clients focused on cost, not quality or outcomes.

Steps to Transition:

  • Identify Outcomes Clients Care About Most:
    Use surveys or client interviews to understand their goals (e.g., save 5 hours/week, double online revenue).

  • Translate Expertise into Results-Driven Language:
    Example: "I help you save 20 hours/month managing social media using AI automation."

  • Price Based on Long-Term Results:
    Calculate the client's potential gains from your service. For example:

    • An AI-powered content strategy saves $500/month on manual work. Charge 10–20% of that annual savings ($600–$1,200).

Calculate Value-Based Prices:

  • Formula: (Projected Value Delivered × Perceived Importance to Client) ÷ Market Benchmarks

  • Example: If your AI strategy saves $5,000 annually and benchmarks show 20% ROI is acceptable, price at $1,000.

Real-World Examples:

  • AI Content Strategist: Transitioned from $50/hour to charging $2,000 for a "30-Day Automated Content Plan," emphasizing the $10,000 annual value in time and cost savings.

  • AI Workflow Consultant: Moved from $100/hour to $3,500 for implementing an AI-powered CRM, saving the client $25,000/year in efficiency gains.

2. Identifying and Communicating Value

Uncovering Unique Value Proposition:

  • List Your Differentiators:
    What makes your AI solution different? (e.g., custom prompt engineering, faster results).
    Example: "I specialize in AI workflows tailored to small business needs, saving clients 10+ hours weekly."

Quantify ROI:

  • Time saved: "Reduces your admin tasks by 50%."

  • Revenue generated: "Increases sales by 30% through automated lead follow-ups."

Demonstrate Tangible and Intangible Benefits:

  • Tangible: Revenue growth, cost reduction.

  • Intangible: Reduced stress, improved client satisfaction.

Communicating Value to Clients:

  • Script Example:
    "I help [busy professionals] save [10+ hours weekly] by automating repetitive tasks using AI. This not only reduces stress but also allows you to focus on growth, saving $5,000 annually in operational costs."

3. Creating High-Value Deliverables

Strategies for Packaging Services:

  • Productized Offerings:
    Example: "AI-Optimized Social Media Starter Pack: 30 posts + 3 automation workflows for $1,500."

  • Bundled Solutions:
    Combine deliverables like onboarding, setup, and support. Example: "AI Integration Package: CRM setup + 3 months of maintenance for $2,500."

  • Retainer Models:
    Offer ongoing services with guaranteed results. Example: "AI Email Campaigns with a 20% engagement guarantee for $500/month."

Tailored Deliverables for AI Solopreneurs:

  • Customized AI workflows for social media or email marketing.

  • Pre-built prompt libraries for specific niches.

  • Automation setup for client onboarding.

Deliverable Presentation Template:

  • Header: Highlight the outcome (e.g., "Double Your Productivity with AI in 7 Days").

  • Body: Detail inclusions, timeframe, and ROI.

  • Footer: Include a results-focused guarantee (e.g., "Achieve X or your money back").

4. Building Confidence for Premium Pricing

Overcoming Self-Doubt:

  • Reinforce Expertise:
    List past achievements or feedback from clients.
    Create a "Value Journal" documenting successes.

Handle Pricing Objections:

  • Script Example:
    "I understand this feels like a big investment, but clients like you typically see [X ROI] within [Y timeframe]."

Practical Exercises:

  • Research competitors charging premium prices for similar services.

  • Role-play pricing conversations with a trusted peer.

Mindset Shift Example:

  • Old: "I'm just starting out, so I can't charge high prices."

  • New: "My unique skills allow clients to save thousands, which is worth a premium."

5. Tactical Pricing Techniques

Avoiding Middle-Ground Pricing:

  • Middle pricing confuses clients. Instead, anchor with:

    • High-ticket: $5,000 premium packages.

    • Low-cost entry points: $99 starter toolkits.

Alternative Pricing Strategies:

  • Anchoring: Offer a high-tier price first. Example: $3,500 for full AI implementation, $1,500 for basic setup.

  • Tiered Pricing:

    • Basic: $500 for 1 service.

    • Premium: $1,500 for 3 services.

    • VIP: $5,000 for a full solution with training.

Pricing Checklist:

  • Calculate perceived value of deliverables.

  • Assess demand for your service.

  • Revisit pricing quarterly based on results and market trends.

6. Leveraging Tools and Technology for Efficiency

Key Tools for AI-Based Side Hustles:

  • Zapier: Automate repetitive workflows.

  • ChatGPT: Generate content or ideas.

  • Notion: Manage projects and deliverables.

Benefits of Tool Integration:

  • Enhances deliverables' perceived value.

  • Boosts efficiency and allows scaling.

Real-World Example:
An AI consultant used Zapier and Notion to automate client onboarding, saving $5,000 in annual costs while increasing capacity for premium clients.

End Goal:

Transition to value-based pricing confidently.
Maximize profitability through premium deliverables and tools.
Communicate worth effectively, positioning services as must-haves for clients.

What You Learned Today

  • Why hourly pricing holds you back.

  • How to create premium packages.

  • Using the Pricing Mega Prompt to transform your pricing model.

And as always, thanks reading!

See you on the other side,

🧪 Francisco from The AI Hustle Lab

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Further Reading: