Selling packages instead of services

What can you do to place additional services on the market? Often it makes sense for you to offer appropriate services for your products. However, billing on the basis of hourly or daily rates is then usually discussed. This is where the idea of building packages of products with corresponding services and pricing them with fixed prices or monthly installments arises in order to achieve reliable and repeatable sales. Now look at even more advantages in the VLOG.

Hi there. The other day I had quite an interesting coaching session with one of my clients and the situation was that this client is an expert for a product. They are a value-added reseller of a software product. And this software product as such is quite a nice - quite a nice tool to generate additional revenues. On the other hand, what they are really interested in is services business, and integration business, and consulting business based on the introduction of that leading worldwide software solution.

So, the question here was how can we - how can we do that? How can we better place our additional services, our consulting, our transformation consulting that helps our clients to successfully introduce the new platform? Our IT consulting, and the training, the coaching, and also, communications trainings to help people better use the new software? How can we - how can we place this better in the market?

And the normal thing then is that companies they go to, to the customer and then they present the product and they say, “Yes, we can also do this, that and the other.” And they offer (..) - they offer daily rates for the training, the coaching, the consulting and so on.

Now, I proposed a different approach here, and that approach is building packages. Since building packages has the advantage that you can give your customers various options to choose. So, you would for example package the actual product sale together with various levels of service that you then can charge on a monthly basis.

That has several advantages. First of all, you’re kind of productising your service. And the second one - and that makes it more scalable. The second advantage is that you can give options with a fixed price to your customer. The third advantage is that fixed prices for a package are rarely being negotiated, very different from daily rates where normally the first reaction of the customer is, “This is too expensive.” And the advantage number four is that you can produce recurring revenues with your services. That can include as I said before the coaching, the consulting, the communications training, the training as such, and also, maintenance and support. So, that can be quite a reliable, recurring and high profit business for you. So, consider this as an alternative of offering your services in the market, change your services. If it is solutions-based or services-based in IT, high tech, consulting or whatever, start changing them into packages, which has quite a few advantages.

This was Armin Rau from Armin L Rau - opening doors. making you grow.

And if you would like to discuss with me this topic or other topics of your B2B sales and account management, feel free to book a 100 percent free planning session with me. Just click on the blue button underneath this video if you’re interested, if you think such a chat can help you. It’s 100 percent free. It’s just a conversation and there’s no sales.

So, hope to see you soon.