7 Benefits Of Creating Service Packages

Published: 06 Jan - 2021 by Ben Rendle

You have started your business and you have a steady stream of income from several clients. Maybe you’re well established and have even started to build a team with a few key hires. But, despite your success, you have yet to achieve the growth you had imagined.

The big problem, though, is that you’re not quite sure how to scale. One area to focus on is correctly pricing and packaging your services.

Of course, pricing and packaging services is more complex than merely creating a few packages and slapping a price on it. Deciding what to include in your packages takes time and requires an understanding of your market.

But if it takes all this time…

WHY EVEN BOTHER PACKAGING YOUR SERVICES?

Here are seven compelling benefits to creating service packages:

 

#1 SERVICE PACKAGES MAKE THE INTANGIBLE, TANGIBLE

Unlike products, services are intangible. This intangibility makes buying services riskier than purchasing products because prospects don’t know what they’re getting until they’ve tried your service.

As a result, many prospects remain on the fence about buying services.

Luckily, service packages help solve this problem by giving the prospects something more tangible to justify their purchase decision.

Packages “productize” your service and remove psychological barriers that prevent prospects from buying.

 

#2 THEY GIVE PROSPECTS CLARITY ON YOUR OFFER

Many HR Consultants mistakenly list all of their services on their website and expect prospects to wade through them to determine the right service for them.

All this information only creates unnecessary obstacles to buying your services.

Packages, however, help you present a limited number of options in a structured way, which improves your chances of winning more business.

 

#3 MULTIPLE PACKAGES ARE THE PERFECT UPSELL

Your existing clients are far more likely to buy products and services from you compared to new customers.

It makes sense when you think about it:

They already know and have a stable relationship with you.

For you to sell more services to existing clients, you need to find ways to upsell.

Creating service packages that showcase an increasing amount of value at different price points is one way to do this.

For example, imagine you have three packages priced as follows:

•            Package 1: £850 / month

•            Package 2: £1,500 / month

•            Package 3: £2,100 / month

Now also imagine that you have a client signed up for Package 1.

Because they’ve already used your service and trust you, they may be easily inclined to upgrade if there are compelling services in the next level package.

 

#4 PROSPECTS DON’T COMPARE YOUR SERVICES AGAINST THE COMPETITION

When you create multiple packages, prospects tend to compare these packages against each other instead of comparing you against the competition.

This is because packaging your services makes it inherently more difficult to compare your services with the competition as consultants will package their services in different ways.

This without a doubt improves the odds of winning their business.

 

#5 YOUR CLIENTS HAVE MORE CHOICE

Offering different pricing and packages means you give buyers more choice when buying your services.

Plus, well-structured packages will also scale with these same clients.

For example, think of when you buy a software subscription. Often there are different tiers which will appeal to different sizes of business.

Rather than change software as the business grows many businesses will instead upgrade their package to the next tier.

 

#6 YOU APPEAL TO PROSPECTS WITH DIFFERENT BUDGETS

Offering multiple packages at different prices ensures you are able to appeal to clients with varied budgets.

 

#7 THEY HELP SHIFT THE FOCUS FROM COST TO VALUE

When you provide an itemized cost for services, prospects usually become cost-focused, which can lead to price haggling.

But because service packages have one total price, prospects are less focused on cost and more on the value of the entire package.

And *SPOILER ALERT* customers who think in terms of value are willing to pay far more for your services.

 

TIME TO CREATE YOUR FIRST PACKAGES!

Now that you understand the benefits of packaging your services, you can start to think about how best to create service packages of your own.

If you would like to read more on how to create service packages you can check out our blog with tips on our Service Package Framework.

 

P.S. Whenever you’re ready, here are 3 ways that I can help you to increase your value to clients, realise higher prices and achieve greater profitability.

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Download our free report detailing the 5 big mistakes HR Consultants make when it comes to their pricing.  CLICK HERE

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And if you ever want to get some 1:1 help, we can jump on the phone for a quick call, and brainstorm how we can turn your financial engine to get you higher fees, more profit, and more time. CLICK HERE

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