For mosts businesses in the United Kingdom (and beyond) diversifying revenue streams and finding efficient methods to grow can be key to surviving in an ever-changing market landscape. One option that's increasingly gaining traction is productising a service. But what does this mean and is it right for your business?
What does productising your service even mean?
At its core productising a service means turning your bespoke services into standardised products. Instead of providing tailored solutions for each client, you develop a one-size-fits-most offering that can be sold at a fixed price and, often, with a defined scope and timeframe. It's a transformation from a client-driven to a product-driven approach.
Some examples of companies doing this well
- Design agencies - Many agencies have begun offering fixed-price design packages for logos, websites, and branding alongside their bespoke services.
- Consulting firms - Instead of only offering custom consultations, some consultants provide standardised training packages, audits or workshops.
- IT support and solutions - Many IT firms now have ready-made software solutions or support packages tailored to specific industry needs, bypassing the need for custom development.
Things to think about: advantages
- Scalability - By standardising your offerings you can serve more clients without a proportionate increase in resources or costs.
- Predictable revenue - Fixed price products can lead to more predictable cash flows.
- Efficiency - Productised services can often be streamlined, reducing the time spent on sales discussions, scope negotiations and bespoke solution development.
- Market appeal - Some customers prefer the simplicity and transparency of knowing what they're getting and at what price.
Things to think about: disadvantages
- Less customisation - Your product might not meet the specific needs of all potential clients.
- Competition and differentiation - As you're offering a standardised product, others can potentially copy it. It becomes imperative to constantly innovate.
- Fixed pricing limitations - While fixed prices can be a boon they also restrict your ability to charge more for complex jobs that might require more resources than anticipated.
Where to start
- Market research - Understand your customers' needs. Can they be met with a standardised offering?
- Start small - Begin by productising one aspect of your service to test the waters.
- Pricing - Decide on a fixed price that covers costs and brings profit but is also attractive to customers.
- Promote - Use your existing customer base to promote your new product. Gather feedback and refine.
- Keep innovating - The market changes, so ensure that your productised service remains relevant and competitive.
Productising a service can be a game-changer for many businesses offering a path to increased scalability and more predictable revenue. However, it's essential to approach this transformation with a well-thought-out strategy keeping both the advantages and disadvantages in mind. As always, understanding your market and continuously innovating is key to success.