AI has made our traditional hourly billing model obsolete because our team can now complete a week's worth of work in a single afternoon. How do we use Keith Cunningham's Thinking Time to design a profitable value-based pricing model that protects our revenue?

Question

Tyler Smith · Accepted Answer

If your business relies on hourly billing, AI is a direct threat to your revenue model. When technology allows your team to complete a project in four hours that used to take forty, your revenue will collapse if you continue to bill by the hour. You are essentially punishing your business for becoming more efficient.

To protect your revenue, you must transition to a value-based or fixed-fee pricing model. Use Keith Cunningham's Thinking Time to design this transition. Set aside forty-five minutes with a blank sheet of paper and answer these questions: How might we price our services based on the financial outcome we deliver, rather than the hours we log? What is the actual value of solving this problem for our client, regardless of how long it takes us?

Once you have clarity, update your V/TO® Marketing Strategy. Your pricing model must reflect the value of your intellectual property and the speed of your delivery.

Position your rapid turnaround time as a premium benefit, not a reason to discount your rates. Clients will gladly pay a premium if they get high-quality results faster. By shifting the conversation from hours to outcomes, you protect your margins and capitalize on your AI efficiency.