Whether you’re a consultant or an IT shop or a freelancer selling services is a solid business, providing your clients with your skills and, in return, you get a fee for the value you provide.Still, there is a downside. Because the revenue you generate is time bound. Selling services limit your profits and opportunities. If you no longer have the capacity to take on new clients, you won’t get to scale your profits either.
One way to break free from this model is by creating products. With your services repackaged as products, you’ll be able to scale your business and serve more clients without giving up more of your time.
Selling a service is much more difficult than selling a product because services are far more intangible than products. Challenge for a service provider is to understand, how to sell services as products.
If the service you offer has the below
- Addresses a specific business challenge that is being experienced by many
- Can be implemented in a finite time frame
- Has predefined fixed outcomes
- Implementation, delivery, and deployment has a fixed pattern
- Can be offered at a fixed price
Then your service line is an ideal candidate to be shipped as a product
You can only begin to earn revenue from a product once it is built.
Focus on what you want to rather than the whole array of things.
You do not have to understand your client's domain/business every time.
Easily sellable to multiple clients
Has a quicker sale cycle as compared selling services
No fancy proposals, instead use fixed product catalogs.
Chances of recurring revenue and increased cross-selling options.
You can start selling your service almost immediately.
Services often tend to bring more revenue than a product for one engagement.
Want an Example? You are looking at one.
IXF Technologies over the years have delivered wayfinding applications on 2D, 2.5D and 3D platforms which goes on Kiosk and handheld devices. When we started automating few areas for a quicker delivery timeline, eventually we decided to develop a product where our entire service line is productized based on our expertise and from a lot of inputs form the industry.
For IXF Technologies it provides greater predictability of results through a tested solution, faster implementation timelines, increased maintainability and greater customer satisfaction resulting in repeat business.