Pricing Services As A Magic Money Machine

_{[Read time: 2.5 minutes]}

I used to charge by the hour.

I hated it.

It never felt right.

Sure, it’s common in many service-based businesses…but I wanted to vomit whenever I shared my rate.

Not because of the number.

Because an hourly rate is inherently framed as a cost.

It’s focused on how much you pay, not how much you receive.

That framing forces the customer’s brain to connect the dots and associate ‘me as a cost.’

I take issue with that.

I want to be seen as an asset, never a cost.

My hatred didn’t stop there.

Hourly-rate pricing also crept into how I approached my work.

I worried about how clients perceived how I spent my time.

And anything that steals my energy is my enemy.

This matters because founders and owners hire me to help them make strategic decisions that grow profits and save time.

Thinking is how I add value.

My thinking doesn’t just happen during regular business hours:

• I'm thinking when I'm washing the dishes

• I'm thinking when I'm on a walk

• I'm thinking when I’m in the shower

So it felt weird to me to charge for shower thoughts (even though that’s probably where I came up with the best solutions).

I stopped charging an hourly rate.

I started charging for outcomes — and I felt way better.

I jokingly called it the “magic money machine” framework.

The phrase stuck with me, so I kept it.

Put in $1, get out $2.

I realized an outcome-based pricing model is how I can be an asset, never a cost.

This way, the focus is on the return on investment, not the cost.

My thesis is that if I can prove I’m a magic money machine, customers will want to reinvest as much as possible.

Plus, I don’t have to worry about when my thinking happens. I can just think.

The switch also uncovered a hidden (third) benefit for me.

My buying decisions improved.

I realized just how strong pricing influences human psychology.

I, too, fell prey to the ‘service as a cost’ mindset — despite owning a service-based business.

That had to stop.

So, I (now) aim to collect as many magic money machines as possible for my business.

So, there are two takeaways this whole pricing process left me with:

1. When selling my services, structure pricing to ensure my work is a net gain, not a cost (and tap into a positive frame of human psychology)

2. When buying services for my business, look past cost and instead focus on the return on investment.

I hope this helps you think about pricing a little bit differently than 2.5 minutes ago.

Thank you for reading.

— Peter

P.S. I’ve been working on something new (and it’s built on the magic money machine framework).

It’s a mini-program called $10K in One Day.

A one-day business audit finds $10,000+ hidden in your existing business operating model. I only get paid if profit is found.

(find $2 first, then put in $1)

I’m wrapping up the details and getting ready for launch in September. I’m offering early access, special bonuses, and price discounts to anyone who joins the pre-launch interest list. It’s perfect for founders and owners of service-based businesses (who operate solo, as a partnership, or with a tiny team).

If you’re interested, click on the poll below. You’ll receive more details over the next few weeks.

By the way, joining the interest list does not require participating when it goes live. But it is the only way to get access, bonuses, and discounts.