How to Package Your Services
Building packages for your services is important for a multitude of reasons. The first is that it helps you productize your services, allowing you to offer a specific scope for a set price. It makes it difficult for potential customers to comparison shop on price, as they may not be able to find packages comparable to the ones you offer.
With this, you are also able to better fulfill your clients’ needs by offering different levels of service. The people who want the normal services can go for the midline package, those who want everything can go for the higher end package, and those on a budget can go for the essentials package. Overall, creating packages for your services will allow you to improve margins. You can get away from charging directly by the hour - charging for the result you provide instead.
Below we dive into how you can implement packages into your service business.
The Rule of Three
Creating three levels provides the perfect amount of choice for potential clients. Less than that, it can make them feel as if it is that or nothing, making them seek something to compare it to. More than three can create paralysis of choice; it makes it hard for them to know which one would be best for them.
The essentials package should be the lower range package. It provides the minimum amount of services, but that is exactly what some people want. The midline package should be what is most commonly bought. It doesn’t have everything, but it will work for most people. And finally, the high end or luxury package should include the works.
Get Specific With Your Offering
Within each level, be specific in what it provides and the outcome they can expect. It provides a clear picture to potential clients of what they will be getting. This also helps to define the scope of work you will provide. With this you are able to accurately calculate the resources necessary to complete the work; allowing you to price effectively and ensure good margins.
There are many ways to go about this, the following is one way we’ve found works extremely. You don’t need to stick to this model, see what works best for you. First, decide how much your base package should be. What is a price you feel comfortable selling it for? Now that you have that, double it for you midline package, and double the midline package to get the price for your luxury package. Doing this should make you feel slightly uncomfortable with how high of a price you are charging. This is ok, you have an economy package for those who are focused on cost. For the people who are willing to pay the price for the full solution, they will do so, and you will be satisfied with the rate you are paid.
Packaging your service has many advantages; it can help to optimize operations, boost average ticket value, and reduce price shopping. If you are thinking of packaging your services, give it a try, you won’t regret it.