Productized Services
Services that are standardized, packaged, and sold like products with fixed pricing, defined deliverables, and streamlined delivery processes. Productized services reduce sales complexity and improve scalability.
Definition
Related Terms
Retainer Agreement
A contractual arrangement where a client pays a recurring fee (typically monthly) to retain your agency's services, usually for a set number of hours or specific deliverables. Retainers provide predictable revenue and stronger client relationships.
Value-Based Pricing
Pricing based on the value delivered to clients rather than time spent or costs incurred. Value-based pricing allows agencies to capture more value and align pricing with client outcomes.
Recurring Revenue (MRR/ARR)
Predictable, repeating revenue from ongoing client relationships like retainers, subscriptions, or service agreements. Recurring revenue provides financial stability and makes agencies more valuable businesses.
Related Resources
Frequently Asked Questions
What makes a service suitable for productization?
Services with common deliverables across clients, repeatable processes, and clear value propositions are good candidates. Look for services where you can standardize 70-80% of the work while maintaining quality and client satisfaction.
How do you price productized services?
Analyze past projects to understand true costs (time, materials, overhead), then build packages with healthy margins. Account for the efficiency gains from standardization. Many agencies start conservatively and adjust based on delivery experience.
Can productized services still be customized?
Yes, but within limits. The best productized services have clear core packages with optional add-ons. You maintain efficiency through standardization while offering flexibility through tiered packages and add-on services.
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