Last night when replying to your (excellent) questions about productized offers, I realized that I’ve yet to write about my favorite secret sauce for successful productized offers.
The first bit of secret sauce (and one of the major “ah-ha!” moments for your clients) is that with a productized offer, your prices are no longer a guessing game for your clients.
Where your competitors are saying,
“I charge $/hour, and it’ll take somewhere between X and Y hours…”
You’re able to say,
“This is $X. And that’s a price quote, not an estimate.”
That’s a fantastic differentiator and will make your clients (and their pocketbooks) happy.
The other bit of secret sauce factor is that Productized Offers are backed by SOPs (Standard Operating Procedures, more info on that here: https://kaidavis.com/standard-operating-procedures/).
What this means is that your process can change, improve, and get more efficient over time. And as you develop your process and get better at delivery, you’ll earn more per hour — even if your prices stay constant.
When you’re just getting started, maybe that looks like $500 for 10 hours of crank turning, making you $50/hour. Not bad, could be better.
Once you’ve got a few reps in and have started improving your process, maybe that changes to look like $500 for 5 hours of crank turning, making you $100/hour. Pretty good, well done.
With your improved process (and social proof e.g., testimonials from clients), maybe you raise your price to $1,000. Now those 5 hours of crank turning make you $200/hour. That’s magical.