If you are struggling to scale your small business offering consulting services, this blog post is for you. Adding a productized services business offering alongside your regular agency work can be a game changer.
For example, design agencies can sell monthly plans for website design; marketing agencies can sell packages of 5 blog posts; consulting companies can sell defined coaching programs.
The productized services model streamlines your production process, so you can focus on scaling instead of selling one-off services. Read on to learn how to create a productized service and transform your business model.
What are productized services and why should small business owners care?
A productized service defined
You know about products and services, and maybe you’ve even heard of productized services before. But what exactly are they?
Simply put, a productized service is when you take a consulting or skilled service, and package it up like a product. Instead of billing by the hour for custom work each time, you create a standardized service package with set prices, scope, and deliverables. Think of it like the difference between a custom home build and a prefab house.
Why go “productized”?
There are some major benefits to running a productized service business versus an hourly consulting model:
- Scalability: With standardized offerings, you can serve more clients without proportionally increasing labor costs.
- Higher margins: You’re not constantly reinventing the wheel for each new client. Processes are streamlined for efficiency.
- Better sales cycle: Prospects know exactly what they’re buying upfront. No time wasted on lengthy proposals and negotiations.
- Recurring revenue: Many productized services offer monthly plans or subscriptions for recurring, predictable cash flow.
Concrete productized service examples
Still a bit hazy on the concept? Let me illustrate with a few examples for small business owners:
- Website design packages (e.g. basic 5-page site, ecommerce store)
- Marketing content creation bundles (blog posts, social media, etc.)
- Search engine optimization (SEO) services at different tiers
- Ongoing business consulting or coaching programs
The benefits of offering productized services
Streamline your processes
Offering productized services can streamline your operations and make your life easier. Instead of developing a proposal for every new client, you’ll have well-defined processes and systems in place. This allows you to work more efficiently, deliver consistent quality, and scale your business without burning out.
Attract your ideal clients
With a clear, packaged offering, you’ll naturally attract clients who resonate with your specific services and pricing model. No more endless rounds of revisions or scope creep – clients understand exactly what they’re getting upfront. This leads to better-fit projects and happier customers.
Boost your profitability
By standardizing your services into set packages or monthly plans, you can increase your profit margins. You’ll eliminate unpredictable billing and spend less time on proposals and admin work. Plus, with optimized production processes, you’ll be able to take on more clients without proportionally increasing costs.
Gain a competitive edge
In today’s crowded market, having a unique business model like productized services can help you stand out. Rather than trying to compete on price alone, you’re offering a differentiated, premium experience. Highlight the value and convenience of your packaged offerings on your website and marketing materials.
Achieve work-life balance
For many agency owners and freelancers, the biggest perk is achieving a better work-life balance. With standardized processes and set boundaries, you’ll have more control over your schedule. You can take on the ideal amount of work for your lifestyle – no more overcommitting or stretching yourself thin.
Examples of companies using the productized services model successfully
Design Pickle
Design Pickle offers unlimited graphic design services on a monthly subscription basis. They have a team of talented designers who work on everything from social media graphics to website design and branding materials. As a small business owner, you simply submit a design request through their platform and it gets added to the queue.
Their pricing is transparent – you know exactly what you’re paying each month for unlimited design work. No more negotiating rates or hourly bills. It allows you to plan your budget easily and get a ton of design work done affordably.
Codeable
Codeable is a productized service for WordPress design and development. They have expert developers who can build custom plugins, themes, or modify existing code on your WordPress website. It’s perfect for agencies and business owners who need ongoing WordPress support.
You purchase a recurring monthly or annual plan based on your needs. Then you can submit as many jobs as you want through their platform. It’s a great way to affordably scale your web development resources without hiring full-time developers.
Content Allies
Content marketing is crucial for any business, but creating high-quality content consistently is tough. Content Allies offers a productized content creation service to solve this. They have professional writers and editors who can produce blog posts, email newsletters, ebooks, web copy and more on a monthly retainer basis.
You simply share your content needs and they handle the full production process – from ideation and outlines to writing, editing and optimization. It’s an easy way for small businesses to outsource content creation reliably.
How to create your own productized service offerings
Start with your expertise
You likely have deep expertise in a specific area or skill set. This could be design services, content creation, consulting services – the possibilities are endless. Whatever your niche, use it to define high-value services you can package and sell repeatedly.
Develop your offerings
Next, productize those services into standardized packages or monthly plans. For example, a web design agency might offer website design packages at different price points. Or a marketing consultant could sell content marketing bundles with a set number of blogs, social posts, etc.
The key is creating fixed-scope offerings with predefined deliverables, pricing and production process. This allows you to streamline operations and scale your business more efficiently.
Market your new business model
With your new productized services defined, you’ll need to get the word out! Update your website with clear descriptions of each offering. Create landing pages highlighting the features, pricing and process, and educate prospects on the value proposition.
You can even add self-service purchasing options to your website using software like vcita’s online booking system. This allows customers to easily buy your productized services 24/7.
Refine and expand
Once your productized services gain traction, keep optimizing! Gather customer feedback to improve the production process and offerings over time. You can also explore expanding into new service areas or price tiers based on demand.
Scaling your business with productized services
Make your business scalable
Transitioning to productized services offers numerous advantages for scaling your business. It enables you to systematize your production process, leading to increased efficiency, consistency, and profitability. By offering well-defined packages, you can attract more clients with transparent pricing and deliverables.
Leverage automation
Once your productized services are defined, explore ways to leverage automation tools, templates, and workflows, and free up time to focus on growth strategies. Tools like vcita’s all-in-one small business management software can streamline client onboarding, project management, and billing. This not only enhances operational efficiency but also ensures a consistent, high-quality experience for your clients.
Continuously improve
Regularly gather feedback from clients and analyze key metrics to identify areas for improvement. Refine your productized services offerings based on insights, ensuring they remain relevant and competitive. As your business scales, consider expanding your product line or introducing tiered packages to cater to diverse client needs.
Productized services could transform your business operations
By embracing the productized services model, you can position your small business for sustainable growth, streamlined operations, and increased profitability. With standardized processes in place, you can better meet customer needs while growing more efficiently. It’s a strategic shift that empowers you to scale your expertise, while delivering consistent, high-quality services to a broader client base.
