Productizing is an ugly word – one of those nouns (like text or impact) which gets turned into a verb. But the results can be extremely attractive.

Let me first explain what productizing is: taking a service, and clearly defining the deliverables, cost, and value. For example, instead of charging $350/hour to construct a will & power of attorney, a lawyer may offer an estate package including these for a fixed fee. No worries about how much time is involved – and no open ended commitment. Easy to understand, and you know what to expect at the end.

And there you have the prime value in productizing – managing client expectations and risks at the same time.

What may practitioners fail to realize is that this does the exact same for you – clearly defining the required effort. Which means that you can protect yourself from margin devouring circumstances with a few limiting clauses (e.g. limit to one revision). This helps you protect profitability – and also predict it. The easily understood aspect of productized services also works to enahnce your reputation as an expert – you clearly understand what most clients need, and have constructed the package accordingly. Don’t let the fact that you have a package dissuade you from charging a customization fee – customers generally understand that you pay more to go outside the box.

Customization. Now there’s an interesting concept. 20 years ago, everyone wanted suppliers who could customize. A lot of service providers to this day have completely custom services. Exposure to a wider variety of providers – and more productization – has seen a fundamental shift in this viewpoint: if everything is custom, then you’re probably too small to really help. The productizers are now seen as the providers who understand the market, and who have aligned their offering with typical requirements.

And while productizing can’t be used all the time, going over a comprehensive breakdown of what you typically provide clients can be a telling exercise. I recently did this for two different clients, and broke down their smorgasbord custom offering into 8-10 separate groups each. In both cases, this not only kept their customers focused on a single need, but encouraged repeat business as other needs were also addressed. In previous years, they’d have tried to address everything with a single program, and never be heard from again.

So managing customer expectations, encouraging better understanding of the service, reinforcing expertise, and stimulating customer retention. Those are all attractive enough outcomes for the “ugly” phrase Productizing.

Share this

Latest Insights

Recent posts from our blog

How to plan for seasonal variances in your cash flow

Have you noticed unexpected seasonal variances in your company’s cash flow? If your business is seasonally-based (a lawn care or snow removal company, for example), it’s normal for your cash flow to vary depending on the time of year. Unfortunately, many companies who shouldn’t be affected by the seasons still experience peaks and valleys in […]

Organizational growth and restructuring: Is your business ready to take the next steps?

Are you planning to take your business to the next level? Before you start growing your company, you need to ensure that your organizational structure is prepped for this major shift. Don’t just jump in head first – make sure you follow our key prep tips to keep your growth sustainable and successful.   3 […]

Do you have a file you need to send to us? Would you like to make a payement?