Introduction
In today’s competitive landscape, productization isn’t just a strategy, it’s a game-changer.
Whether you’re a solo consultant or running a large-scale organization, the ability to transform your services into tangible products can elevate your business, streamline your offerings, and boost your market appeal.
Let’s dive into why productizing everything is essential for success, how it simplifies your customer’s decision-making process, and the added value it can bring to your business.
Why Productising Everything Is The Best Option For You
Productization allows you to offer value in a way that’s clear and easy to understand. Instead of simply offering hours of service, which is often seen as a commodity and leads to price comparisons, productizing your service turns your offering into something customers can identify with and perceive as valuable.
Take a look at this: In an increasingly digital world, service-based businesses, whether you’re a solo consultant, accountant, or event planner - you often face the challenge of competing with large platforms like PeoplePerHour or Fiverr.
The battle isn't just about offering low-cost services; it’s about positioning your offerings as unique, valuable products.
When you bundle and package your services into distinct offerings, you create a discussion point and provide clear value to potential clients.
How to Productize: Bronze, Silver, or Gold Packages
One of the easiest ways to productise your services is through tiered packages. Offering Bronze, Silver, and Gold options gives your customers a clear choice, based on their needs and budget, while also providing a straightforward pricing model that makes their decision easier.
- Bronze Package: Includes essential services that are tailored to meet basic needs.
- Silver Package: Offers more features and additional support.
- Gold Package: Your premium offering, with extensive services designed to deliver maximum value.
This tiered model allows clients to see exactly what they’re getting for their investment, moving the conversation away from time and price and focusing on outcomes.
It’s like an all-inclusive holiday package—clients know upfront what they’re paying for and appreciate the transparency.
Bundling and Splintering for Maximum Impact
Once you've productized your services, you can take it a step further by bundling or splintering them to maximize the value you provide.
Bundling: Allows you to combine several related services at a discounted rate, increasing the perceived value for your clients.
For example, if you’re offering a bookkeeping service, you can bundle it with a year-end financial review or a tax consultation.
This approach gives clients more for their money and simplifies their purchasing decision.
Splintering: On the other hand, involves breaking down a larger service into smaller, standalone offerings.
This is ideal for clients who might hesitate to commit to a full service right away. For instance, offer an initial consultation at a lower price point, giving prospects a taste of the full service they’ll receive in a premium package.
If they see the value, they’re much more likely to upgrade to the full service.
The Customization Debate: Can You Really Productize in a Custom World?
One common objection I hear is, “But we’re so custom, productising won’t work for us.”
To that, I say: You’re wrong.
Even the most custom services can be productized.
Take Valspar / Sherwin Williams, for example. Their paint is a product, but it’s also highly customizable - you can mix any color you want, based on your exact specifications.
The base product (white base paint) is always the same, but the value is in the customization.
Similarly, in a custom service business like event management or custom dentistry, you can still create a base offering that acts as your “white base paint.”
From there, you can offer variations that clients can choose based on their needs.
Whether it's a basic package, a high-end version, or something entirely bespoke, you can still provide clarity and value through productization.
Leveraging Margins through Smart Pricing
Another key benefit of productizing your services is that it allows you to leverage margins.
If you’re offering multiple products or services that require similar setup or groundwork, you can bundle them together and reduce setup times.
For instance, if you offer three separate products at £1,000, £2,000, and £5,000, you could reduce the overall setup cost and sell them as a package at a competitive price, thus increasing the overall value without reducing your margins significantly.
This approach creates a win-win situation:You save time, increase your revenue, and offer a better deal to the customer.
It’s not about overcharging customers, it is about using strategic pricing and bundling to enhance value for both the customer experience and your profitability.
What’s Next for Your Business?
It’s time to stop trading hours for money. By productising your offerings, you’ll not only set yourself apart in a competitive market but also deliver exceptional value that customers can clearly see and understand. It simplifies their decision-making process, creates a better customer experience, and allows you to scale efficiently.
Next steps:
- Map out your core services and start identifying which ones can be bundled or splintered.
- Create tiered packages to make your offerings more digestible.
- Look for ways to reduce repetitive tasks through bundling or automation, which can improve margins.
- And most importantly, ensure you’re consistently overdelivering, provide extra value at every stage of the customer journey.
Productization can help you streamline your services, reduce client confusion, and create a more scalable business model.
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