A quick take on why we believe offering real value is better than a bucket of billable hours. It is primarily how it affects a client and service provider relationship. We value relationships at a premium so we do a scope of work, value-based approach vs. billable hours against a project.
In order to hand off a high level of deliverables, a solid working relationship is key. Trust me, I have seen this so many different ways over the past 20+ years and it was a continuous debate between service agency and client that was super unproductive and frustrating on both ends. Not including all the wasted (yes, wasted) time logging hours, estimating hours, justifying hours, not billing hours, or even writing off hours - which then leads to conversations with management about "why didn't we bill those hours?" Again, this only wastes productive time for the client and agency on real problems to solve.
Value-based vs hourly based work moves the relationship more towards either:
Both of these mindsets from either the service provider or the client soil the relationship and move the conversation away from achieving the desired results of the work. We prefer to focus on getting expectations met and exceeded, not jostling over how many hours it should or should not take to do said work.