- Joined
- Apr 16, 2014
- Messages
- 74
Rep Bank
$405
$405
User Power: 128%
"I’m in a ranting mood.
Turn your SERVICE into a PRODUCT already. (5 min read)
For business owners, the anxiety of not enough time or money tends to be the result of having built a service business rather than a product business.
NOTE: I’m not suggesting that your accountant give up being an accountant and start selling kitchen utensils or that your chiro stop selling chiropractic services and just flog spikey roller balls online (I’m mashing my foot onto one as I type).
Quite the opposite.
Let’s start with a definition of PRODUCT.
Product: A structured offering designed to deliver a predetermined outcome/result for a specific niche at a set price.
I’m going to touch on some of the key bits of that definition.
STRUCTURED
Back to the definition. Notice I said ‘structured’, not ‘tangible’. An iPhone is a tangible product, but you can also build a productised service. It’s still a service, (like chiropractic) it’s just structured and packaged differently - ideally in such a way that the founder isn’t required to deliver it.
The problem with offering general ‘consulting services’ or creating ‘customised briefs’ for every new client is this approach injects a high degree of variability into your business model.
Variability is bad. It makes it difficult/impossible to create standardised systems and processes for both sales and delivery. This multiplies inefficiencies that often trap the skilled founder as the only one capable of delivering amongst such chaos. #hell
PREDETERMINED OUTCOME / RESULT
Charging by the hour is a rookie move. People don’t value your time; they value results.
Would you rather pay your lawyer in 6 minute increments for an unspecified period of time in the hope of eventually achieving an undefined outcome? OR would you prefer to pay a set fee for a guaranteed result? Give your customers what they want.
The lazy lawyer/consultant/anyone will argue that there’s too much variability in their clients’ needs, so they can’t price based on a specific outcome.
THEY’VE GOT IT BACKWARDS.
It’s not their clients that have too much variability in their needs, it’s themselves who are offering services that are too general.
Generalisation means you compete against more businesses, which from a pricing perspective is a race to the bottom. It also creates variability in your model that traps you in your business.
So doing any of this stuff is pretty much #batshitcrazy
NICHE
I often rant about niching. One of the benefits of targeting a defined market segment is that it allows you, (the founder) to create specialised, structured offerings that are designed to deliver specific, pre-determined results for that unique clique of customers.
Not only does this make it easier to attract those people willing to pay a premium for a specialised (differentiated) offering, but it makes it much easier to start building out the systems needed to free you from the delivery process."
Turn your SERVICE into a PRODUCT already. (5 min read)
For business owners, the anxiety of not enough time or money tends to be the result of having built a service business rather than a product business.
NOTE: I’m not suggesting that your accountant give up being an accountant and start selling kitchen utensils or that your chiro stop selling chiropractic services and just flog spikey roller balls online (I’m mashing my foot onto one as I type).
Quite the opposite.
Let’s start with a definition of PRODUCT.
Product: A structured offering designed to deliver a predetermined outcome/result for a specific niche at a set price.
I’m going to touch on some of the key bits of that definition.
STRUCTURED
Back to the definition. Notice I said ‘structured’, not ‘tangible’. An iPhone is a tangible product, but you can also build a productised service. It’s still a service, (like chiropractic) it’s just structured and packaged differently - ideally in such a way that the founder isn’t required to deliver it.
The problem with offering general ‘consulting services’ or creating ‘customised briefs’ for every new client is this approach injects a high degree of variability into your business model.
Variability is bad. It makes it difficult/impossible to create standardised systems and processes for both sales and delivery. This multiplies inefficiencies that often trap the skilled founder as the only one capable of delivering amongst such chaos. #hell
PREDETERMINED OUTCOME / RESULT
Charging by the hour is a rookie move. People don’t value your time; they value results.
Would you rather pay your lawyer in 6 minute increments for an unspecified period of time in the hope of eventually achieving an undefined outcome? OR would you prefer to pay a set fee for a guaranteed result? Give your customers what they want.
The lazy lawyer/consultant/anyone will argue that there’s too much variability in their clients’ needs, so they can’t price based on a specific outcome.
THEY’VE GOT IT BACKWARDS.
It’s not their clients that have too much variability in their needs, it’s themselves who are offering services that are too general.
Generalisation means you compete against more businesses, which from a pricing perspective is a race to the bottom. It also creates variability in your model that traps you in your business.
So doing any of this stuff is pretty much #batshitcrazy
NICHE
I often rant about niching. One of the benefits of targeting a defined market segment is that it allows you, (the founder) to create specialised, structured offerings that are designed to deliver specific, pre-determined results for that unique clique of customers.
Not only does this make it easier to attract those people willing to pay a premium for a specialised (differentiated) offering, but it makes it much easier to start building out the systems needed to free you from the delivery process."
Written by Glen Clarson here: https://www.facebook.com/glencarlson.cc/posts/457604737756950
Click on the link above if you want to read some of his answers to the comments of his post
Disclaimer: I have NO affiliation with Clarson, I just thought this post of him could be useful to some members of the community
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Last edited:
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today