If you’re having trouble with selling your services, have you thought about selling them like a product? This is what we call a productized service.
Productized services don’t include customizations or personalizations. What you see is what you get, meaning you won’t have to make as many adjustments or try to please everyone who comes your way. This is why productized services are often quoted as packages that are set in stone.
These packages typically include a select number of services which could include revisions, strategy calls, and more. Then, there is usually a flat fee for this service so leads can promptly decide whether the productized service is the best fit for them.
In this article, you’ll learn why so many entrepreneurs are switching to a productized service model and how it can free up more time and space in your calendar for projects you love.
The benefits of productized services
Ideally, the productized services you’re about to create will feel like the perfect fit for incoming client leads. Some entrepreneurs believe productized services will limit their growth or feel too constricting, but many of us have found the opposite to be true!
Let’s uncover the main benefits of productized services and see if they’re the right fit for your service-based business!
Easy to quote
Are you wasting too much time when you’re faced with quoting individual projects that come your way? I used to find myself in the same rut.
If you’re spending hours on creating custom proposals or find it hard to personalize every project quote, you’re going to love productized services. By selling a pre-built package, you won’t have to worry about going back and forth with client leads.
All you need to do after a sales call is quickly send them a pre-made proposal with all of the information they need about your productized service so they can make a wise purchasing decision. I recommend doing this through a CRM like Honeybook so it makes the process even easier.
With a CRM, you can build your proposals, contracts, invoices, and forms so this whole onboarding process can be automated. It will save you hours of time each week, and you won’t have to worry about quoting each project separately. Productized services are made to be simple and straightforward, which is why I think you’ll like them.
Confidently set your rates
You won’t have to worry about leads trying to nickel and dime you when you offer productized services. It’s easier to stand behind your rates because it’s the same flat fee for everyone you work with.
If you’ve ever struggled with people asking for discounts or felt tempted to give everyone a lower rate so you can win the project, productized services will give you the confidence boost you need to stay true to your rates.
Your pricing isn’t open for negotiation when you’re offering productized services. Many leads will be more likely to honor your prices when they know you’re offering a pre-built package. If setting your rates is something you struggle with, this could be a great solution.
More predictable income
Too many service providers fall prey to the feast and famine mode, especially when they first start their business. If you’ve experienced difficulty in predicting your month-to-month income, you might want to consider offering productized services.
Because these services are priced at a predetermined fee, it’s easier to estimate what your income will be. For example, if you were custom quoting each project that comes your way, you could be charging $1000 for one project and $500 for another depending on what they need.
However, if you are operating under the productized service model, you may set a flat fee of $1500. Anyone who works with you on a specific service will receive the same quote. On the sales call, you can also describe the value of every deliverable that’s included and explain why the package is always priced at this amount.
Instead of wondering if you’ll meet your income goals based on the number of clients you have to book or the size of each project, you can streamline your booking by using productized services.
Easy to schedule in your calendar
Speaking of streamlining your client booking, it’s much easier to schedule projects in your calendar with productized service.
Let’s use the example of a business coach. As a coach, you may offer a three-month coaching program. Based on the number of meetings included in the program and how many hours you want to work, you can easily decide how many coaching clients you want to book at a time.
This decision is made easier because you’re following the same process for each client. When the process is simple to reuse and repeat, booking clients in your schedule will feel like a breeze.
If you had to custom quote your coaching services, you may find that you could work with clients for a varied amount of time. While it may seem nice to work with some clients for, say, six months and others for three months, this will create confusion.
Productized services save you from serving too many clients at one time and reduce the amount of project overlap. It will also give you a clear overview of your schedule so you don’t feel like you need to cram client work into any open space on your calendar.
Reduce your time on sales calls
As an entrepreneur, you probably either love or hate sales calls. For most of us, they’re a necessary part of doing business, but how much time you spend on these sales calls matters. This is especially true for entrepreneurs who are interested in scaling.
Prospects are found to be 12% more likely to show up for a call that’s scheduled for 30 minutes than an hour-long call. I try to keep conversations to 15-30 minutes when I’m meeting with a lead for the first time. This gives me enough time to talk about their business, set goals, and sell them on my services.
Without productized services, you may be tempted to use much of the call to describe all of the different ways you could help them. However, you may do more harm than good by presenting them with too many options. This analysis paralysis feeling is often tied to a decrease in conversions, so it is crucial to use your time on sales calls wisely.
When you jump on sales calls, it’s best to spend time gathering the information you need to assess what their most immediate needs are so you can recommend a pre-built package for them. Then, the selling process will feel as seamless as the booking process!
Less scope creep
We’ve all worked with clients who ask us to go above and beyond our original project scope. When this happens, we are given two options. We can either say no because it’s not included in the project scope or say yes to adding it in.
Scope creep often happens when you don’t have clear instructions and boundaries around what’s included in your package. The benefit of offering productized services is that the deliverables are clearly defined in the package.
When this happens with clients during a product, you can simply redirect their attention to the list of what’s included in the productized service they invested in. You may also offer the opportunity to work with you on their new project for an additional fee, or you can refer them to someone else who may be more equipped to help.
This is why I always recommend having contractual agreements in place that clearly outline what is expected of both parties. That way, you can reduce scope creep and reestablish your boundaries as a service provider. I recommend contract templates from The Legal Paige if you want to get started with this.
Ready to scale
For service providers who want to build an agency or team, you’ll have a difficult time scaling your business without productized services. When your business outgrows your own capacity, it’s already clear you don’t have won’t have the time to individually quote each project.
Instead, you’ll want to treat your done-for-you services as products that can be easily sold and delivered. It won’t be the same as offering a physical product, of course, but your service will still include a repeatable process that can be followed by any team member. It also includes a predetermined project scope with key objectives to hit.
To ensure you set your team members up for success, be sure to test and approve your productized services. Then, your company will feel like a well-oiled machine at each stage of growth.
What will be your next productized service?
Based on this list, you may be convinced that creating productized services is the best way to move forward in your business. Let’s take a moment to review all of the reasons why productized services are a great fit for growth-minded business owners.
- Easy to quote
- Confidently set your rates
- More predictable income
- Easy to schedule in your calendar
- Reduce your time on sales calls
- Less scope creep
- Ready to scale
The only question left is what productized service will you create next?