How to Turn Your Services into Products
It’s hard to say that “productizing” your services is a new trend but if you’re a service-based business, it’s definitely worth thinking about whether it’s time for you to get in on this idea. The concept is simple: take service-based work that’s difficult to conceptualize and convert it into a defined product with a price tag. There are a few great reasons to consider this approach:
It can help you define a niche. Alot of business owners are afraid of niching down their services. Maybe this is you. You’re afraid of saying no to work and the idea that you might not appeal to everyone is a little scary. I get it! I went through this phase as well and as it turns out, saying yes to anything and everything is like taking the expressway to burnout-ville.
It allows you to create systems and processes that are repeatable and scalable. This allows you to work smarter, not harder. Never again feel like you’re reinventing the wheel with each new client you take on. The objection many service-based biz owners have to productization is that they feel that their offering is just “too custom” to define. If this is truly the case, you should probably be charging alot more for your work! Productization doesn’t mean that your work isn’t personal to each of your clients, it just means that the process you take them through remains (generally) the same. You can document it, define it, rinse and repeat it.
It helps your clients or customers know exactly what they’re getting. People outside your industry or organization are not always in the best position to understand exactly what it is you do. What they know is that they have a problem and (hopefully) your services are the key to solving it. Defining your services as “packages” or products help define the value that you offer in terms your target demographic can understand and buy into to.
Of course, these aren’t the only benefits to taking the work you do, putting it into a box and tying it up with a pretty little bow but hopefully these are good enough reasons to read on to learn how easy it is to do!
Productization in 3 Easy Steps
The first step may require you opening up a Google sheet and making a master list of every.single.thing. you do as part of your core service. Account for every hour you put in, all the menial tasks that you do that you normally don’t really get paid for, everything.
Group like with like. Maybe your signature offering could really become two different products? Maybe you realize that what you were billing as three different services is actual one base product with some additional addons? Seeing the details of the work you do in this way will also help you discover your niche. Is there a way you could organize the work into a deliverable that your target demographic could identity with best? Again, think about the value you offer and the problem your service solves for your client.
3. Do the Math
The best part about productization is that you really only have to do the math once because once you have determined the price, it’s set! There are a few pricing methodologies you could use but my favorite is tallying up the number of hours a typical project takes you, giving your calendar an honest look and figuring just how many projects you could reasonably do in a month. I say this because you know what amount of money you need to bring home on the first of the month and you know how much time you want to work each week. The rest is just easy math. The bonus here is that this gives you a hard sales target to shoot for each month - just like tracking inventory!
So easy, right?! Can you also see how productization might help you start to do things like improve your messaging (it’s so clear now who you’re selling to and what they’re getting) or even build some recurring or passive income (since clients are no longer one-and-done with your services)? You could expand on your service-as-product and offer an educational component, or scale it up or down to appeal to people with different budgets. So many paths to take that help you be a better service provider!
The best part is that productization is a win-win: your future best customers are looking to better understand what you do so that they can feel comfortable working with you and you’re looking to do the best work possible for them, while also taking care of your bottom line.
Do you have questions about productization? Not sure how to package up what you’re doing as a product that people could buy online? Hit me up and let’s chat! I’d love to help you brainstorm!