Small businesses (or large companies for that matter) that sell services sell something that is intangible. The buyer can’t see it, can’t touch it, can’t take it out of the box and can’t test it out to see how well it works.
If you’re a business owner that sells these intangible services, then you probably sell them on an hourly basis – quoting each job separately based on the project’s specifics. And there’s nothing wrong with this approach. A graphic designer, for example, may quote an hourly rate to create a company logo and then offer a rough estimate of the total number of hours and cost based on the particulars of each project.
But this approach usually means that the deliverables for each project end up being slightly different, resulting in a slightly different total cost for every logo design service provided. And how many ‘little things’ is that designer throwing in for free by pricing this way?
By turning a typical service into a package, you precisely detail every activity involved in this task and the deliverables you will produce at a set price. Using the example of a graphic designer again – a logo design package could include a brand strategy session, a set number of logo design concepts, a set number of revisions and the creation of the final files for the client. As the servicer provider, you know how long it will take to perform these tasks so you define the boundaries of the project for a set price. And clients no longer have to struggle to figure out what they need, they can simply pick this product up off the shelf and buy it.
You’re not re-inventing the wheel by productizing your services. You’re not even offering a new service. You’re simply standardizing your execution and your pricing – making it easier for you to manage and more attractive for your customers to purchase.
Productizing services can also stimulate stagnate sales. Market your new ‘product’ well and you create a new revenue stream out of services you already provided on an ad hoc basis.
And, from a buyers’ perspective, you’ve turned the intangible, tangible.