One of the biggest challenges in selling services is that your services are intangible. Unlike products, it can’t be seen, touched, or tasted.
When customers buy a product, they know they’ll pay a fixed amount for that product and they pretty much know what they’ll get for their money.
Selling services however is a totally different ball game. When a client “buys” a service, they also know what they want to get from it, but they often don’t know how long it will take and how much they’ll need to pay in the process to get to the results they want. This is due to the fact that services are often charged for by the hour – the client pays for each hour or session they work with you until the desired results are achieved.
The problem is: charging by the hourly builds up some resistance and impacts on a client’s buying decisions.
Other negatives of charging by the hour include the following: it puts a limit on your earning potential because you won’t be able to raise your hourly rates indefinitely. There are also just a limited amount of hours in each day, week or year that you can work with clients so you can really only work with a limited number of clients in a given time period.
Furthermore, selling services by the hour makes marketing and getting clients more difficult because clients are often resistant to pay high hourly rates as they are uncertain if they’ll receive value for the amount they pay per hour.
So, what’s the secret to solving this dilemma?
The secret is to position your services as a product.
Today’s Tweetable Tip
The secret to selling services and making more money at it is to create services packages.
Packaging your services simply means that you group a number of services together and then sell them as a group deal or package. This transforms your services and makes it look more like a product; having a specific outcome and fixed price and thus making it easier for clients to buy.
Benefits of service packages include things like:
They help you to break away from the “time-for-money” trap;
Involves a fixed and/or longer time period;
They are based on the value a client will receive and typically “promise” a specific end result;
You can charge higher fees than charging by the hour;
The package has a fixed price, making it easier to buy.
To illustrate a services package, let’s say you are an image consultant. Previously you’ve been selling consultations at an average of $97 per hour and could effectively work with only 6 clients in a day. So your income was approximately $582 per day. It all went well for a while but eventually you feel you work yourself to death and your clients do not really experience the full benefits of what you can do for them.
This is when you decide to look at your services differently and rather create service packages where you group a number of your most popular services into one package and offer it for example as a “One-Day Makeover” package for $997. This package now includes a wardrobe assessment, color consultation, a 3hr personalized shopping trip and some other nice goodies. This package allows you to spend more time with one client; they experience much more value and way better results AND it almost doubles your income per day.
Take note that with a service package, you’re giving your clients a defined result (a “make-over” as in our example). It has a clear time frame and a set price. So clients know what they will get and what they will pay for it, making it easier for them to buy.
With service packages, you in effect raise your income per day, work less and can focus on the work you enjoy more. Your clients get better results. They love you for it and are happy to spread the word about you and your services. It is a win-win relationship.
Create Service Packages at Different Levels & Price Points.
The idea here is to offer different services packages to give clients options to work with you. E.g. you can create 3 different packages – Package 1 at a small investment, Package 2 at a medium investment and Package 3 as your top of the line option. You’ll often see these presented as Gold, Silver, and Bronze packages, but you can be more creative with your package names.
For example: Let’s take the image consultant again. She can for example create the following packages.
Package 1:Colour analyses (lowest priced package)
In this package she includes for example:
An evaluation of the 12 different colour groups you fall in.
What fabrics and patterns suit you best.
Hair colour and Eye colour analyses.
Face shape analyses to help you select eye-wear, hairstyles, earrings, hats etc.
Package 2:Figure and Style Analysis (mid-level investment)
This package can include for example:
A full color analyses (everything from package 1) PLUS
Figure and style analyses
Wardrobe assessment
Package 3: The New You – One Day Makeover (most expensive)
This package can includes for example everything from package 1&2 Plus
A personalized shopping trip
Make-up lessons
**Please note I’m not an image consultant, and the ideas / examples presented here might not be spot on for a professional image consultant business. They are just used for illustrative purposes 🙂
The reality is that creating different packages at different price points make it simpler for someone to buy a service package that meets their needs at a price point they are willing to pay. It is also easier to “upsell” people into your higher priced packages because they can easily see the added value.
Thus, working with service packages makes marketing much easier. Your clients will perceive more value from working with you, and you will reap the benefit of greater sales and income.
And by the way… even if you think you don’t, you do have package solutions in your business! No matter what services you provide or what type of business you have – in some way, shape, or form you can package your services to solve one or more of your client’s problems!
Love & Success!
P.S. If you want more support with structuring and creating products and service packages to leverage your time and income, get in touch! I help my clients create offerings that sell, so that they not only make a difference in their clients’ lives, but in return are handsomely rewarded for making that difference!
Okay, so what happens after a prospect becomes a client?
You’ve done a lot of hard work to convert a prospect into a paying client. How do you now cement this relationship into a satisfying long term working relationship, where your new client is happy to stay on for years on end?
As a start, you roll out the red carpet and make your new client feel super special.
Sending them a special gift is usually a good way to start.
This can be a box of chocolates, a bottle of wine or just something small to let them know you appreciate their business…and including a handwritten welcome note with your gift will just seal the deal.
The next step is to ensure both you and your new client are on the “same page” with regards to the working relationship. It is important to put this client at ease and provide them with the necessary information of how you work and what the roles of each party are.
For this, you can send your new clients a welcome kit.
A welcome kit serves as a reference guide to give them the information on how things work in your business. It can also go a long way towards establishing credibility and presenting yourself as a serious business owner.
What to Put in Your Welcome Kit?
Well, you can basically use anything that can help your new client understand your processes better.
You can include:
An introduction or welcome letter on your company letterhead. The purpose of this letter is to make the client feel welcome and also to review the main points regarding the project/program you’ll be working on.
Your bio – This can be your compelling story of how you got to where you are now. Clients love to know more about you the moment they start working with you. This helps them to relate better to you. Include some interesting facts, life experiences and your values.
A short overview of what else you offer. The purpose of this is not to serve as a selling tool, but rather to inform your new prospect of other ways they can benefit in working with you as well.
Policies and procedure within your business. Give your clients the details of how you work. E.g. how you will communicate with them; how often you check email, what you expect from them and what they can expect from you.
Your office hours.
Contact details – be clear on how and when clients can contact you.
A copy of the contract / agreements for them to sign and send back.
Call to action – tell clients what you want them to do (e.g. sign and return contract)
Your business card and extra cards for them to pass out. Remember, this new client can now become part of your unpaid sales force and can refer you to other clients.
A brochure.
A list of frequently asked questions.
Promotional items with your logo: e.g. pens, calendars, magnets.
Any publicity items you may have: articles you’ve written or articles that were written about your business, testimonials, press releases.
Client questionnaire. Include this if you feel there is additional information you need to understand from your client and their business.
It is not necessary to include everything above, but evaluate what is applicable to your business.
As a rule of thumb, include things that will highlight important aspects of the relationship and will help the client to understand how things work.
How to Present Your Welcome Kit
When you work mostly virtually with clients, you can email your welcome kit or use file sharing software if it is quite a hefty document. You can also put it into a specific client portal you’ve created especially for this client.
Else, you can send it to them in hardcopy format. Print it on the best paper possible – it doesn’t need to be extremely expensive, but it should be as professional as it can be. It shows respect and appreciation for the client, and it demonstrates the excellence of your business.
The truth is, when you start the relationship positively and keep the relationship strong throughout with services excellence, it is much less expensive and requires much less work to retain a client than to get a new one.
Thus putting your best foot forward from the start, positively impact the impression your clients will form from day 1 and can increase the likelihood that they would stay on longer.
Action Steps For Today:
Develop a process to cement the relationship with a new client
Decide what you will send as a welcome gift and if all (or just clients in a specific program) will receive this gift.
Prepare your client welcome kit and set a goal of when it should be finished
Tip: Set up your welcome kit and have it ready. Then each time a new client signs up with you, it only requires minimum changes to tailor it to this specific client before sending it off.
Decide if current clients can use the information – then send it to them as well.
To grow and to prosper, in business and in life, it is important to learn. These days, technology makes it extremely easy to learn top quality information from experts all around the world and is making the world a small place! We are surely in the middle of an information explosion – and, between you and me, I love it.
One of the most effective approaches to learn these days and to get access to new information is via attending online events like teleseminars and/or webinars. These are events you attend over the telephone (teleseminars) or via streaming on your computer (webinars) rather than attending the event at a specific location.
How do Teleseminars Work?
The teleseminar host and the listeners all dial the same telephone number and connect via a teleconference line (also known as a bridge line).
The teleseminar can be a one-way event where the host/speaker lectures and the participants listen. There are however also teleseminars where the speaker actively interacts with the participants and/or the participants interact with each other. Teleseminars are similar to the in-person or physical seminars we’re used to attend, except that everything is now happening via phone.
Teleseminars can be a one-time event, where everyone meets on the phone for an hour or so. It can also be an ongoing series, where everyone meets e.g. once a week for several weeks or even months.
Teleseminars are primarily an audio format and can be recorded. If the host records the call and makes it available afterwards, you can download these audio files, and listen to it at your own time. This is particularly beneficial if you’ve missed the live call and or when you want to cement the learning and refresh what you’ve learned. In this fashion, a teleseminar becomes a life-long learning opportunity for the student.
Benefits of attending a teleseminar
You do not need any specialized equipment. For a teleseminar you only need a phone
You can attend from anywhere in the world. Every teleseminar has a unique number to call, so at the time of the training, you can simply call the number (which will be provided to you by the host of the event) and listen/participate in the call.
It is convenient. We all have busy lives and teleseminars allow you to quickly get training in one-hour increments without having to travel to multiple destinations. You can attend the event from the comfort of your house – and even in your PJ’s (no-one will know ;))
It’s an incredibly cost effective and time efficient way to enjoy all of the benefits of traditional, in-person seminars and training. With teleseminars and webinars, you can learn from- and interact with experts in your industry effortlessly, and because there are no travel or hotel costs associated with it, you can save money while learning.
Tips for attending a teleseminar
It’s always better to us a landline phone when attending a teleseminar. However, if you want to save on long distance international phone costs and have a stable internet connection, you can dial into most conferences with technology such as Skype (by using Skype credit). I personally use Skype for attending teleseminars since I always have to call international numbers to attend. Thus for me, Skype is convenient and extremely cost effective (a 60min call to the US often costs me less than a “trip” for one to Mugg&Bean or Starbucks).
Do not multi-task while on the call. Even though we as women are good at multitasking, you do miss important information if you are not fully listening and concentrating on the call. So schedule some uninterrupted time, take lots of notes and have fun. This is a great way to learn!
Things to know up-front
Teleseminars can either be a paid event or be at no cost. If it is a paid event, the event host will give you the details up-front and you will have to pay in order to get the call-in details and access to the actual event.
Many coaches and online business owners have free teleseminars giving out great info. If it’s free, go and participate as there’s minimal risk to you. Take advantage of the opportunity. It’s a great way for you to start building a business relationship with the speaker / host and or other participants.
Just keep in mind that even if a teleseminar is at no cost (from the host side), you will incur some costs on your telephone bill (because it’s a phone call) or by buying and using Skype credit.
If you are a new business owner, or even a savvy entrepreneur, attending on-line training via teleseminars can vastly benefit your business. It’s a great and very convenient way to learn without the hassle of leaving your house.
Do you create, do or give something to your clients that lift your business up above your competition? In other words, does your business have that something that makes you get the clients while your competitors don’t?
That is called a “winning edge”.
Let me try to explain this by using an example of horses running a race.
As you know, horse racing is not only a prestigious sport; but there is also huge prize money involved and the horse that wins the race walks away with the bulk of this prize money – even if he only wins by a “nose”.
In some races, the winning horse can receive up to ten times more in prize money than the horse that comes in second. This however doesn’t mean the wining horse have to be ten times faster than the second horse. He just need to be a little bit faster or a little better trained for this race or has a skilled jockey that can make a racing decision just a little bit better than the other jockeys.
It is the same in business. People who become successful and prosperous are sometimes just a “nose” in front of those who don’t! They do things just a little bit better or do things just a little bit different than the rest which then leads to extraordinary results.
Create prosperity in your business and give yourself that winning edge, by focusing on one or more of the following:
1. Distinction
Be noticeably different from your competition. Luckily, it’s not really that difficult to create distinction, to stand out and be different from a crowd of anonymous competitors. You only need to do 1 of 3 things. You either need to
Deliver a unique service that not many other solo-preneurs do, or
Deliver a common service, but do it in a unique way or even
Deliver a common service in a common way but then specialize in a particular audience.
2. Excellence
Strive to become excellent in what you do and be brave enough to set the standard in your industry.
Do everything to the best of your ability. When you sell a service, you need to fulfill with excellence – like dinner depend on it. Be a person of integrity and don’t manipulate the truth or cut corners to make a buck.
Excellence enables you to become trusted in you market place and not only to attract loyal clients, but also loyal partnerships and creating thriving partnerships give you the leverage to spread your message even further and helps to create quantum growth in your business.
Regardless of what you do, always put your full effort behind it and don’t do anything halfway.
3. Service Value
Always serve your clients with value in mind. Give them more value than what they’ve bargained on because satisfied clients are the foundation upon which you can create more prosperity in your business.
Businesses with satisfied, loyal clients enjoy greater customer retention, repeat business, more word of mouth advertising and consequently greater profits.
The art of giving your clients value boils down to finding out what they want or what they consider to be of value, then persuading them that what you offer will deliver that value.
Your Assignment for today:
With all 6 Success Strategies in mind, give yourself and your business the opportunity to become prosperous, Break away from the trap of only doing enough to “get by,” or being content with being “good enough”.
Focus on those things that can give you the winning edge in your business. Be distinct, be excellent in what you do and deliver exceptional service value to your clients to become prosperous and to take your business from merely surviving to thriving this year
Love & Success
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Since starting my business a couple of years ago and working with many entrepreneurs in the process, I’ve noticed that numerous solo-businesses struggle with getting more clients due to the fact that potential clients do not know about them.
It’s often the case where entrepreneurs excitedly start their online businesses. They know they have a service that will make a difference in people’s lives and because they are excellent in what they do, they often expect people to naturally know how good they are and how they can help clients.
What happens is many solo-preneurs get everything just right to perform business and then …they wait!
They wait and think “Oh, the clients will come to me”… and when the clients do not line up and are not eagerly waiting to work with them, they get discouraged and start wondering if being self-employed was the right decision to make?
The truth however is: if you want to take your business from merely surviving to thriving, you HAVE to get out there in a really big way and consistently market & promote your services.
It sounds simple enough, but people often shy away from marketing and promoting their services due to inherent false beliefs that it is ‘sleazy’; or you have to ‘sell’ yourself – much like a door-to-door salesman trying to sell you something you don’t need.
Marketing and promoting your services however doesn’t have to be sleazy at all. When it is done authentically, your marketing simply offers the solutions your clients are already searching for.
Therefore it is actually your duty to inform people how you can take away their pain and problems with the services you offer!
To effectively market and promote your services:
Get your message and your services in front of the clients you want to work with;
Go to the places where your clients are already gathered for you.
Actively meet new people, speak to them and start engaging in conversations. Don’t wait and assume clients will come to you. You need to give them a reason to do so.
Have confidence in yourself, your services and your business. If you don’t have a genuine belief in the importance and the value of your services and don’t know that it can really help your clients or even change their lives, you clients won’t have confidence in you either.
Realize that when you promote your business, you’re not pushing people to buy what they don’t want. Instead, you’re offering them a solution to the problems and pain they experience.
Make every marketing action count so that it helps to achieve your ultimate goals. Don’t just do marketing for the sake of marketing. Do the necessary planning and follow a structured plan that gives you a diversified outreach and maximizes your returns.
Market and promote your services daily, consistently and persistently. It doesn’t help much to only crank out a couple of marketing activities when the appointment book looks a bit empty.
Marketing and promoting is like planting a seed. It rarely gives instant results.When you plant a seed in the ground, it needs constant attention in terms of water and pruning to help it grow into a lovely tree that will eventually bear fruit.
Thus your marketing needs daily attention to bring consistent results.
Mastering the marketing aspect of your business is the best skill you can learn to take your business from merely surviving to thriving.
To your success
P.S. Your assignment for this week: Have total conviction about what you do and from this moment forward consistently market and promote your services. I guarantee you’ll start attracting more clients than you are now. It works!
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If you don’t package your services, you probably leave money on the table.
One of the biggest challenges in selling services is that what you offer is intangible. Thus, the most common way people charge for services is to charge by the hour. The client pays for your time, and they keep paying until the project is complete or your work with them is done. But there are 2 inherent problems with this:
First, clients are often resistant to pay for hours. You will hear them say, “I don’t want to leave it open-ended” or “That seems very high for an hourly rate“. We hear these excuses on a daily basis.
Second, there are only 24 hours in a day. Eventually your income will reach a ceiling because you won’t be able to increase your number of hours and/or increase your hourly rate indefinitely.
A strategy to overcome this time for money trap is to package your services.
This simply means that you group a number of tasks or services that you regularly perform into a service package and sell it at a fixed price. This help to make your service looks more like a product and make it more tangible because you can now better explain the benefits and results a client will get from it.
Even though you perform exactly the same services as when you do it on an hourly basis, by grouping some complementary services together into a service package and offering it at a fixed rate, you can focus the client’s attention on the outcomes and results of working with you and not on the time it takes to perform the tasks.
For example: Let’s say you are a social media specialist, and you work with clients on an hourly basis to set-up and maintain their social media profiles. When you package your services, you can for example create 3 different packages at different levels and price points.
The lowest priced packages can include some basic level tasks such as setting up a specific social media profile, but the client still have to do the bulk of his social media activities himself.
The mid-tier program can include all the tasks to set up different profiles, integrate them with his website and create a unified brand for your client across all his profiles.
The top tier packages can be a ‘done-for-you’ and include all the tasks from the other packages plus you take care of his total social media strategy and updates.
Each of these packages thus caters to a different segment of your market.It gives prospects a choice that suites their budget and individual needs better.
Packaging your services therefore:
Makes it easier for clients to say yes and work with you.
Removes the element of uncertainty (which is inevitably present when you charge by the hour)
Gives you the potential to raise your rates and increase your income as you can charge more for packages than for hourly services and clients will still be happy to pay because they focus on the outcome and results they will get from it.
Service packages put the money back into your pocket.A well-structured package can elevate your income and is a great strategy to take your business from merely surviving to thriving. It is also a fun step in business because you can start discovering the untapped potential and profits in your business.
To Your Success
P.S. Your assignment for this week:Think about the services can you group together in your business. Then create a services package around it.
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Francis van Wyk is an experienced business and client attraction mentor who supports women solo-preneurs with planning and achieving business success online.
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