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How to Accelerate your Growth Through Productization

Productization is all the rage now. Many freelancers and orgs are looking to this to boost their revenues and reduce their work load. This is a short guide on how to go about it.

How to Accelerate your Growth Through Productization

Before the Industrial Revolution, items such as shoes and clothes were made to order and tailored to the specific needs of a single person. Then, during the 18th century, people began constructing devices that could produce things in factories at large scale.

Personalization and craft represented value propositions on one hand, while efficiency and consistency represented values on the other.

Customers and customers nowadays demand a lot more than simply tradition. They want both the personal touch of bespoke items and the value and convenience that mass manufacturing methods provide.

As a result, established as well as new businesses have developed business models that enable for productization to deliver a variety of customization, efficiency, and value in a repeatable manner.

The dictionary definition of productization simply states that it is the act of changing something, such as a concept or an internal tool of an organization to make it suitable as a commercial product.

Now you must be thinking...

"Why would I ever need this?"

... and to answer that, this article will delve into each and every function a productized service will serve you and its benefits to your organization as a whole.

A productized service should include the following characteristics

  1. Scalable - The amount of effort and money you put into your business should not vary regardless of how many units you sell. It should take you the same amount of time and money to sell fifty items as it does to sell ten.
  2. Not Time-Bound -Whether you bill by the hour or per project, client work still requires time and effort on your part. Aside from occasional customer service, projects don't generally require additional time or effort for each sale.
  3. Mass-Produced - Instead of customizing projects for each client's specific requirements, they will receive identical ones.

How to Productize a Service

The demand for productized services has never been higher. It appears that everyone is attempting to establish one. But what are they, and how can vendors offer them with the least amount of danger?

There will be time to discuss each of these topics in detail. Before we get started, it's critical to make sure we have a firm grasp on the fundamentals.

So, Let us start with two very important definitions:

Product - Is an object that is sold to clients

Service - Is a performance of labor that is sold to clients

Businesses have earned millions of dollars selling goods and services. They've also made millions of dollars providing services. Each has certain benefits over the other.

For instance:

Customers can generally comprehend what they're purchasing and how much it will cost, which makes selling items considerably easier.

Vendors who use virtual services typically spend less time and utilize less labor before a purchase is made.

Isn't it fantastic if we could put the best features of each and create a combined product that has all of those benefits?

We can!

Services that have been converted or customized to appear and function similarly to traditional items are called productized services. A productized service is defined by the following traits:

Project Scope - The project scope must be precisely defined, including all deliverables and processes.

Fixed price - The selling price must be visible and not linked to the specifics of a specific purchase.

Lack of individualization - The product must be designed with the intention of appealing to a wide range of consumers.

Benefits of Productization

Reduction of overhead costs

Productized services completely eliminate the need for resources that are devoted to negotiations, discussions of scale and the creation of custom proposals. These savings, in terms of time, energy, and materials are then freed up and can be applied elsewhere within vendors' businesses.

Some businesses may just take pleasure in the associated cost savings, but others will see significant value in reallocating those resources to improving the quality of outputs, taking on additional work, purchasing advertising, or investing in traditional items.

The resources you could save are considerable, especially when one you consider that many proposals are never accepted by their recipients.

Productivity also encourages employees to make improvements. Most service providers charge by the hour for the labor. This creates a lot of perverse incentives, in which the greater efficiency the service provider is, the less money he makes.

As a result, for hourly service providers, it's often not worth investing in upgrading their abilities or adopting automation. After all, why put effort and money into improving one's expertise if it will only result in lower earnings?

Efficiency gains go straight to the company's bottom line when working with productized services. This is because the only price that clients see throughout their entire purchasing journey is the final price they will be charged.

In other words, buyers are blind to a vendor's actual hourly rate rises. Instead, customers are urged to concentrate on the value they get from the service rather than on the number of hours it took to create the deliverables.

The more productized and uniform a vendor's service offerings become, the more the cost of investments into onboarding, process control, automation, training, and research can be spread across clients.

When working on tasks with little overlap, out-of-pocket costs would have been prohibitively expensive, but when projects have comparable needs, they appear to be rather low. Consider a dentist who is thinking about purchasing a $10,000 tool for a specific operation.

If he were to utilize it for a single patient's visit, he wouldn't be able to justify the expense. However, if he performs the treatment many times, the expenditure will appear very cheap.

It's not just a question of incentivization; it's also about exposure. Productizing one's service offerings allows inefficiencies to be more readily identified.

As the variety of services provided by a vendor narrows and the activities they perform become more predictable, data from each project will be easier to combine and analyse across projects.

Reports will show up as patterns if you have useless risks, waste, and the presence of low-value activities. The consistency in the tasks across projects allows unattractive characteristics to be identified and modeled easily.

Risk reduction for the vendor

Vendors that provide productized services benefit from their predefined nature, as it eliminates a variety of issues that could crop up in the future.

For example, the pesky scope creep will be reduced since the definition of each project will have been defined before work begins.

With some effort, providers of productized services can sufficiently limit their initial scope of work such that customers would not even think to push for the inclusion of additional requirements.

Productized consultants have a lot more control over the process through which they deliver value.

Vendors will learn from experience to look for the most important warning signals, since each project is built using the same basic template and has the same scope.

The precision of project scope allows experts greater insight into the data than they would have otherwise had.

Vendors can reduce their risk of nonpayment by offering productized solutions. Because consumers are less resistant to paying up front, this is a benefit.

Most service-based businesses are in fact in the loan business, even if they don't realize it.

These employees are paid with their own money, and hope that the accounts payable sections of their clients' companies will reimburse them. These payments are sometimes delayed.

These payments are sometimes never sent. It's not simply a question of having a set fee schedule that allows vendors to demand payment ahead of time. It's the change in consumer mentality.

Many purchasers are habituated to believe that goods and services are always paid for at the time of transaction, and that they must wait some time for payment. Fortunately, productized services frequently appear to be more like products than services.

How to Fast-Track Growth by Productizing

Follow these five simple steps to accelerate your firm’s growth:

1. Execute, Don’t Perfect

Accountants frequently provide "a la carte services." Because it's easier to take the easiest path and stick to a traditional model, this is what they do.

Eventually, however, your business peaks. It’s what I commonly refer to as an upper threshold problem. Earning more requires you to give up personal time.

It’s exhausting and not sustainable. Eventually, you start to explore your options.

Have you ever thought about productizing your services? It’s simply a way to package your services together.

Over-thinking what services to include might result in a bad package. Don't worry; you may create as many packages as you want.

Start offering "good enough" packages to prospective clients the best way to test your offerings is to go with "good enough."

You’ll receive specific feedback from your clients about your packages:

  1. Value: Astute knowledge about what your clients value.
  2. Unimportant: Figure out which services you thought were important, but your clients don’t really value.
  3. Overlooked: Your clients ask you to additionally include these services into your packages.

2. Feedback is Golden

You may want to remain client-centered no matter how big or little your company is. Consider your clients' requirements, wants, and desires as you productize your services.

A difference exists between the three:

  • Needs: What tool, procedure, or service does your client require that they may not express? These are required to complete the task. Consider the reports, useful work, and information that your clients need.
  • Wants: Consider wants as something that isn't absolutely necessary, but it will make things simpler. If you provide bookkeeping services, your clients will undoubtedly want tax-related services and QuickBooks training. These services may be included in your packages to solve a specific problem while also appealing to a certain demographic of client.
  • Desires: People desire things that they consider to be luxurious. Perhaps you would want to run a help desk and technical support for your customers. Alternatively, each package may include a certain number of client meetings.

Add and Subtract

Do this simple thing to create a strong package: include everything that is required, and remove anything that isn't.

Add: First, consider what you think your clients need, want, and desire. What is the most difficult problem that your clients encounter when they first meet with you? Your solution addresses that issue.

It comprises activities and insights that are absolutely necessary to address that issue. When was the last time your customers required any other services after their problem was fixed?

Remove: Finally, describe the services you presently provide that you don't enjoy or aren't required. Then remove these items from your business. You'll notice that certain operations are draining your productivity.

As a result, eliminate the unneeded elements from your offers.

3. Audience

As you pay attention to your clients' demands, you'll get more acquainted with their needs, wants, and desires. Well-designed productized services will catch the attention of your ideal client. If this doesn't happen, consider changing your pricing:

1. Revamp your message. Examine your marketing materials. Is your client appealing? Your website, for example, is likely to focus on you and your service. However, it fails to address the needs of your client.

As a result, your marketing materials are uninteresting and generic. In essence, they appear more like a sales pitch than anything else. Productize your services and update your website so it's more customer-friendly.

Discuss how you solve difficulties, what people may anticipate from you, and how to get started.

2. Adjust your expectations to match the client’s needs. The alternative is to solicit input from your current customers, particularly potential consumers.

Make an appointment with them. Pay attention to how they express themselves. Then ask them how you may assist them. After these meetings, evaluate your productized services and make any required modifications.

4. Price Your Productized Services

Never sell yourself short. It’s easier to price for value when you productize your services. Follow these effective ways to set your price:

a) Determine your value: It's pretty tough to price your services. Your self-esteem has an impact on your charges. People will mirror your value, so be aware of this. As a result, you must first become acquainted with what you offer before others are willing to pay for it.

b) Price for value: not for time. Your ideal consumers will gladly spend in your packages once they understand the value. It's up to you to link the dots. Educate them about each package's advantages.

c) Focus on benefits, not features: The problem you address has a greater impact than all of the actions you take to address it. Overall, accountants tend to focus on what they do rather than what they're trying to achieve. The characteristics are defined as such tasks and activities.

On the other hand, your clients invest in your productized service because it solves a problem.

For example, an entrepreneur who ends up spending countless hours each week on searching for misplaced papers hires an organizer. She hires the organizer to reduce time spent searching for important documents, not because she wants color coded files which is what organizers usually do.

d) Increase your perceived value: The greatest approach to enhance your worth is to acquire experience in a certain area. Then, offer advice on that topic as a consultant. Clients want an expert who has previously handled their issue and can solve their problem effectively when they are ready to deal with it.

e) Return Ratio: Clients should realize that the services they purchase provide enhanced value over and above what they spend for the service.

Is it more likely that your $12,000 service will enable them to make an additional $50,000 this year? Alternatively, if you can resolve a problem for $6000, do they continue to lose $2000 each month as a result of a challenge that you can fix for $6000?

Use techniques such as personas, archetypes, and metaphors to explain how your product or service solves the client's problem. How can you most clearly describe your solution to their problem and what might be accomplished once it is resolved? To set yourself apart from the competition, emphasize those distinctions.

f) Increase your profit margin: You'll improve your skills over time. You attract better clients as your level of service improves. Don't put off raising the prices of your goods any longer. This is the simplest method to boost your earnings. And keep in mind that, while keeping any unnecessary services out of your company, you should continue to remove them.

5. Test and Execute

A simple idea contributes to your success: implementation and insight. Continue to modify your packages until they are perfect. To learn more about a company's growth, read about how other accounting firms developed. Keep an open mind when it comes to new concepts.

To get started immediately on productizing your service click here for a FREE TRIAL!

Before the Industrial Revolution, items such as shoes and clothes were made to order and tailored to the specific needs of a single person. Then, during the 18th century, people began constructing devices that could produce things in factories at large scale.

Personalization and craft represented value propositions on one hand, while efficiency and consistency represented values on the other.

Customers and customers nowadays demand a lot more than simply tradition. They want both the personal touch of bespoke items and the value and convenience that mass manufacturing methods provide.

As a result, established as well as new businesses have developed business models that enable for productization to deliver a variety of customization, efficiency, and value in a repeatable manner.

The dictionary definition of productization simply states that it is the act of changing something, such as a concept or an internal tool of an organization to make it suitable as a commercial product.

Now you must be thinking...

"Why would I ever need this?"

... and to answer that, this article will delve into each and every function a productized service will serve you and its benefits to your organization as a whole.

A productized service should include the following characteristics

  1. Scalable - The amount of effort and money you put into your business should not vary regardless of how many units you sell. It should take you the same amount of time and money to sell fifty items as it does to sell ten.
  2. Not Time-Bound -Whether you bill by the hour or per project, client work still requires time and effort on your part. Aside from occasional customer service, projects don't generally require additional time or effort for each sale.
  3. Mass-Produced - Instead of customizing projects for each client's specific requirements, they will receive identical ones.

How to Productize a Service

The demand for productized services has never been higher. It appears that everyone is attempting to establish one. But what are they, and how can vendors offer them with the least amount of danger?

There will be time to discuss each of these topics in detail. Before we get started, it's critical to make sure we have a firm grasp on the fundamentals.

So, Let us start with two very important definitions:

Product - Is an object that is sold to clients

Service - Is a performance of labor that is sold to clients

Businesses have earned millions of dollars selling goods and services. They've also made millions of dollars providing services. Each has certain benefits over the other.

For instance:

Customers can generally comprehend what they're purchasing and how much it will cost, which makes selling items considerably easier.

Vendors who use virtual services typically spend less time and utilize less labor before a purchase is made.

Isn't it fantastic if we could put the best features of each and create a combined product that has all of those benefits?

We can!

Services that have been converted or customized to appear and function similarly to traditional items are called productized services. A productized service is defined by the following traits:

The project scope must be precisely defined, including all deliverables and processes.

Fixed price - The selling price must be visible and not linked to the specifics of a specific purchase.

Lack of individualization - The product must be designed with the intention of appealing to a wide range of consumers.

Benefits of Productization

Reduction of overhead costs

Productized services completely eliminate the need for resources that are devoted to negotiations, discussions of scale and the creation of custom proposals. These savings, in terms of time, energy, and materials are then freed up and can be applied elsewhere within vendors' businesses.

Some businesses may just take pleasure in the associated cost savings, but others will see significant value in reallocating those resources to improving the quality of outputs, taking on additional work, purchasing advertising, or investing in traditional items.

The resources you could save are considerable, especially when one you consider that many proposals are never accepted by their recipients.

Productivity also encourages employees to make improvements. Most service providers charge by the hour for the labor. This creates a lot of perverse incentives, in which the greater efficiency the service provider is, the less money he makes.

As a result, for hourly service providers, it's often not worth investing in upgrading their abilities or adopting automation. After all, why put effort and money into improving one's expertise if it will only result in lower earnings?

Efficiency gains go straight to the company's bottom line when working with productized services. This is because the only price that clients see throughout their entire purchasing journey is the final price they will be charged.

In other words, buyers are blind to a vendor's actual hourly rate rises. Instead, customers are urged to concentrate on the value they get from the service rather than on the number of hours it took to create the deliverables.

The more productized and uniform a vendor's service offerings become, the more the cost of investments into onboarding, process control, automation, training, and research can be spread across clients.

When working on tasks with little overlap, out-of-pocket costs would have been prohibitively expensive, but when projects have comparable needs, they appear to be rather low. Consider a dentist who is thinking about purchasing a $10,000 tool for a specific operation.

If he were to utilize it for a single patient's visit, he wouldn't be able to justify the expense. However, if he performs the treatment many times, the expenditure will appear very cheap.

It's not just a question of incentivization; it's also about exposure. Productizing one's service offerings allows inefficiencies to be more readily identified.

As the variety of services provided by a vendor narrows and the activities they perform become more predictable, data from each project will be easier to combine and analyse across projects.

Reports will show up as patterns if you have useless risks, waste, and the presence of low-value activities. The consistency in the tasks across projects allows unattractive characteristics to be identified and modeled easily.

Risk reduction for the vendor

Vendors that provide productized services benefit from their predefined nature, as it eliminates a variety of issues that could crop up in the future.

For example, the pesky scope creep will be reduced since the definition of each project will have been defined before work begins.

With some effort, providers of productized services can sufficiently limit their initial scope of work such that customers would not even think to push for the inclusion of additional requirements.

Productized consultants have a lot more control over the process through which they deliver value.

Vendors will learn from experience to look for the most important warning signals, since each project is built using the same basic template and has the same scope.

The precision of project scope allows experts greater insight into the data than they would have otherwise had.

Vendors can reduce their risk of nonpayment by offering productized solutions. Because consumers are less resistant to paying up front, this is a benefit.

Most service-based businesses are in fact in the loan business, even if they don't realize it.

These employees are paid with their own money, and hope that the accounts payable sections of their clients' companies will reimburse them. These payments are sometimes delayed.

These payments are sometimes never sent. It's not simply a question of having a set fee schedule that allows vendors to demand payment ahead of time. It's the change in consumer mentality.

Many purchasers are habituated to believe that goods and services are always paid for at the time of transaction, and that they must wait some time for payment. Fortunately, productized services frequently appear to be more like products than services.

How to Fast-Track Growth by Productizing

Follow these five simple steps to accelerate your firm’s growth:

1. Execute, Don’t Perfect

Accountants frequently provide "a la carte services." Because it's easier to take the easiest path and stick to a traditional model, this is what they do.

Eventually, however, your business peaks. It’s what I commonly refer to as an upper threshold problem. Earning more requires you to give up personal time.

It’s exhausting and not sustainable. Eventually, you start to explore your options.

Have you ever thought about productizing your services? It’s simply a way to package your services together.

Over-thinking what services to include might result in a bad package. Don't worry; you may create as many packages as you want.

Start offering "good enough" packages to prospective clients the best way to test your offerings is to go with "good enough."

You’ll receive specific feedback from your clients about your packages:

  1. Value: Astute knowledge about what your clients value.
  2. Unimportant: Figure out which services you thought were important, but your clients don’t really value.
  3. Overlooked: Your clients ask you to additionally include these services into your packages.

2. Feedback is Golden

You may want to remain client-centered no matter how big or little your company is. Consider your clients' requirements, wants, and desires as you productize your services.

A difference exists between the three:

  • Needs: What tool, procedure, or service does your client require that they may not express? These are required to complete the task. Consider the reports, useful work, and information that your clients need.
  • Wants: Consider wants as something that isn't absolutely necessary, but it will make things simpler. If you provide bookkeeping services, your clients will undoubtedly want tax-related services and QuickBooks training. These services may be included in your packages to solve a specific problem while also appealing to a certain demographic of client.
  • Desires: People desire things that they consider to be luxurious. Perhaps you would want to run a help desk and technical support for your customers. Alternatively, each package may include a certain number of client meetings.

Add and Subtract

Do this simple thing to create a strong package: include everything that is required, and remove anything that isn't.

Add: First, consider what you think your clients need, want, and desire. What is the most difficult problem that your clients encounter when they first meet with you? Your solution addresses that issue.

It comprises activities and insights that are absolutely necessary to address that issue. When was the last time your customers required any other services after their problem was fixed?

Remove: Finally, describe the services you presently provide that you don't enjoy or aren't required. Then remove these items from your business. You'll notice that certain operations are draining your productivity.

As a result, eliminate the unneeded elements from your offers.

3. Audience

As you pay attention to your clients' demands, you'll get more acquainted with their needs, wants, and desires. Well-designed productized services will catch the attention of your ideal client. If this doesn't happen, consider changing your pricing:

1. Revamp your message. Examine your marketing materials. Is your client appealing? Your website, for example, is likely to focus on you and your service. However, it fails to address the needs of your client.

As a result, your marketing materials are uninteresting and generic. In essence, they appear more like a sales pitch than anything else. Productize your services and update your website so it's more customer-friendly.

Discuss how you solve difficulties, what people may anticipate from you, and how to get started.

2. Adjust your expectations to match the client’s needs. The alternative is to solicit input from your current customers, particularly potential consumers.

Make an appointment with them. Pay attention to how they express themselves. Then ask them how you may assist them. After these meetings, evaluate your productized services and make any required modifications.

4. Price Your Productized Services

Never sell yourself short. It’s easier to price for value when you productize your services. Follow these effective ways to set your price:

a) Determine your value: It's pretty tough to price your services. Your self-esteem has an impact on your charges. People will mirror your value, so be aware of this. As a result, you must first become acquainted with what you offer before others are willing to pay for it.

b) Price for value: not for time. Your ideal consumers will gladly spend in your packages once they understand the value. It's up to you to link the dots. Educate them about each package's advantages.

c) Focus on benefits, not features: The problem you address has a greater impact than all of the actions you take to address it. Overall, accountants tend to focus on what they do rather than what they're trying to achieve. The characteristics are defined as such tasks and activities.

On the other hand, your clients invest in your productized service because it solves a problem.

For example, an entrepreneur who ends up spending countless hours each week on searching for misplaced papers hires an organizer. She hires the organizer to reduce time spent searching for important documents, not because she wants color coded files which is what organizers usually do.

d) Increase your perceived value: The greatest approach to enhance your worth is to acquire experience in a certain area. Then, offer advice on that topic as a consultant. Clients want an expert who has previously handled their issue and can solve their problem effectively when they are ready to deal with it.

e) Return Ratio: Clients should realize that the services they purchase provide enhanced value over and above what they spend for the service.

Is it more likely that your $12,000 service will enable them to make an additional $50,000 this year? Alternatively, if you can resolve a problem for $6000, do they continue to lose $2000 each month as a result of a challenge that you can fix for $6000?

Use techniques such as personas, archetypes, and metaphors to explain how your product or service solves the client's problem. How can you most clearly describe your solution to their problem and what might be accomplished once it is resolved? To set yourself apart from the competition, emphasize those distinctions.

f) Increase your profit margin: You'll improve your skills over time. You attract better clients as your level of service improves. Don't put off raising the prices of your goods any longer. This is the simplest method to boost your earnings. And keep in mind that, while keeping any unnecessary services out of your company, you should continue to remove them.

5. Test and Execute

A simple idea contributes to your success: implementation and insight. Continue to modify your packages until they are perfect. To learn more about a company's growth, read about how other accounting firms developed. Keep an open mind when it comes to new concepts.

Some Examples of Productized Services

To convince you on your decision to productize your service, I have below complied for you a list of productized services you could get that inspiration from:

Marketing / SEO

Smash Digital – A Clean and Effective Link Building Service

Smash Digital | SEO Pros with Skin in the Game

Attention Always – White Hat Link Building That Catapults Your Traffic & Sales

Attention Always Blog - Home | Facebook

Brand Builders – Done for your niche and amazon sites

BrandBuilders.io | Done-For-You Websites That Work

Superfast Business – Productized coaching, website and traffic services

SuperFastBusiness® Online Business Coaching

Growthgeeks –Platform where experts and freelancers can package up their services

Growth Geeks Review - Is Growth Geeks a Scam? - Jonathon Spire.

Social Hackettes – Increasing organic social media followers

Social Hackettes - Home | Facebook

Podcasting

Podcast Motor – Podcast hosting and editing as a service

PodcastMotor - Home | Facebook

Cashflow Podcasting – Podcast editing as a service

Cashflow Podcasting | Podcasting Services For Thought Leaders

Call For Content – Authority marketing agency for podcasters

Podcasting Agency - Call For Content

Content / Writing

Content Ellect – Affiliate, SEO optimized content at $0.07 a word (I’ve paid for it, it’s quality)

Content Marketing Agency Without The BS | Contentellect

Content Refined – monthly content packages including content upgrade (I’ve paid for it, it’s quality)

Content Refined - Content Marketing Refined - Complete End-to-End Solution

Human Proof Designs – monthly content packages for affiliate site owners (I’ve paid for it, it’s quality)

Human Proof Designs Review 2020: [$1K+] Done For You Aged Sites

CopyHackers – one-off CRO copywriting website review

Copyhackers is the Digital Home for the World's Copywriters

Audience Ops – content marketing for SaaS companies that includes marketing funnels and content promotion

Audience Ops Podcast · Audience Ops

Graphic Design / UX / CRO

Design Pickle – unlimited graphic design by your personal graphic designer

Unlimited Graphic Design Subscription - 30-Day Risk Free Guarantee | Design  Pickle

Rocking Book Covers – book covers for authors

Book Cover Design Services - Rocking Book Covers

Website Rescues – CRO website redesign

Website Support with Website Rescue - Website Rescue

Penji – Unlimited graphic designs, one flat monthly rate

Penji Review: A Simplified Graphic Design Service You Can Try

Limitless Designs – Get a dedicated graphic designer for less than $10/day

Limitless Graphic Design - Photos | Facebook

WordPress Maintenance

WP Curve – ‘service as a service’ wordpress support [update: not sure if signing up new clients after being acquired by Godaddy)

wp-curve - Dan Norris

Cloudoptimus – Ultra SecureStupid Fast WordPress Hosting for Professional Bloggers

CloudOptimus Review 2021. cloudoptimus.com good webhost?

Work Hero – web, design & automation on monthly packages

The Best WordPress Resume Builder Plugins - Work Hero

WP Quickie – small one time WP tasks as a productized service

WP Quickie

LightSpeedWP – WordPress speed optimization productized service

LightSpeedWP - WordPress Speed Optimization Service



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