Service Package Framework: Starting To Package Your Services

Have you previously tried to create service packages? Maybe you gave up and went back to a service by service offering? Whilst there is no doubt there are many benefits to packaging your services, it can be a tricky thing to get right. In this article I will run through the framework we use to help our clients to package their services for maximum profitability.

So how do you create a service package?

#1 Collecting Information to Narrow Down Your List of Services

Research your customers 

When deciding how to build your service packages, listen to your market. Speak to your clients and prospects. Engage in conversations to learn about their core problems. Review what services they are currently buying. Revisit what they purchased when you started working together and see if those needs may have changed.

Analyze your own business 

Another way to determine what types of services to combine is to review your own business:

• Reflect on past projects to see what worked, what didn’t and what you want to keep. You will likely discover certain services aren’t worth keeping given your earnings vs. time spent
• Review your past sales to determine what services to keep and what services to cut. Chances are, you will probably find that some services bring in more revenue and profits compared to others.
• Establish what services you ENJOY providing, after all there is no point building a business around services which cause you to dread getting up in the morning!

Research your competitors

Finally, research your competition to see what services and packages they offer. Use this research to give you ideas and insights for creating your own service packages.

 

#2 Building Your Service Packages

A). Bundle Services Together

This strategy is suitable when your client needs change or when clients begin to compare your services against the competition based on price.

With this strategy, you bundle together several services to create a more robust and convenient offer for your client. Usually when you’re working for clients, there’s something they need to do with your work before and after you can do it.

For example, you might run a redundancy consultation for your client. But maybe you realize you are relying on your clients to provide details of the need for restructure and the selection process.

That opens an opportunity for you to expand your offering and introduce a new up-levelled tier.

B). Package Different Service Levels

This strategy caters to clients with different needs and different budgets. It also gives clients a choice and encourages the upsell.

The idea is to present several packages alongside each other to allow clients the choice of different levels of service. Each package includes different deliverables and provides incrementally more value.

For instance, for HR Support you could present three packages:

•            Starter package: Remote HR advice to senior management for £500 per month

•            Mid-range option: All of the above, plus review of company policies and procedures including a monthly face to face strategy meeting with CEO  for £1,600 per month

•            Premium option: All of the above, plus provision of bespoke policy updates  and attendance at face to face meetings with staff. for £2,000 per month

This packaging strategy is ideal for getting clients to try your services for the first time because you have an inexpensive option positioned alongside a middle and premium one.

C). Package Your Service Process

This is an often-overlooked method of packaging services. With this method, you package how you deliver your service to demonstrate expertise and build trust.

For example, you may decide to detail and package the steps involved in a redundancy process, such as a client briefing session, creating the staff briefing documents, managing consultations, applying selection criteria, informing staff of outcome.

 

#3 PRICING YOUR PACKAGES

Finally, after you’ve packaged your services, it’s time to price your packages.

Pricing is important because if you get it wrong, your packages will become unprofitable.

For example, if you price them in a way that leads people to cheap out, you’ll almost always sell your lowest package, which won’t help you grow like you want to.

So, how exactly do you price your service packages?

The critical thing to remember when packaging your services is that you’re forcing clients to think about the value and not the cost. This means old pricing assumptions are invalid. You can, and should, charge more for your services based on the value they now provide.

One value-based pricing strategy you can use is tiered pricing. Used when packaging different service levels, you charge an incrementally higher price to capture the subsequent increases in value.

This pricing strategy allows you to experiment with the different prices of your packages to encourage customers to purchase a specific one.

For example, you can increase the price of your low-end package relative to the middle- and high-end ones. This increase makes the latter two packages more attractive because clients now get more value for a marginally higher investment.

Also, consider the price jumps between packages. No matter how much “value” is in your second package, if it’s double the cost of the first, people will think, “It’s double!” So make those jumps feel more like organic progressions.

Finally, remember that the lowest package sets a tone for the kind of business you are and the kinds of clients you’ll attract. Your pricing should be set at a level that attracts the right kind of business, not just any and every client.

 

YOUR FIRST FEW SERVICE PACKAGES AND BEYOND

 

Pricing and packaging your services can be tricky. There’s undoubtedly much more to the process than deciding on a few packages and putting a price to it. You need to:

• Research and understand the market to create packages that actually capture the value that’s important to your clients.
•  Choose from several packaging strategies such as bundling your services and offering different service levels.
•  Adopt a value-based pricing strategy to ensure you’re not charging based on cost.

 

By following the above framework, it’ll only be a matter of time before you have your first few packages and are selling more services.

But remember: The first version of your packages will not be your last. The market changes. Your client needs also change. And as a result, your service packages will probably need to change too.

The only remaining question is: Are you ready to package and price your services?

 

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.

Download the Report

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

Join the Community

Our best content is posted inside our FREE Facebook group Pricing & Profit for Modern HR Consultants. CLICK HERE

Have a Strategy Session

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