Avoid the perils of turning services into products
Selling a custom service to each and every client can be tedious and time consuming. The intangible nature of services often makes it difficult for customers to appreciate what they are buying and, ultimately, the value of what they are paying for. For vendors, services businesses are usually synonymous with ‘one shot’ engagements leading to inconsistent cash flow. This is why many professional services firms attempt to turn their services into products. Products are generally easier to describe, easier to price, and easier to bill. In other words, they are repeatable and serve to alleviate some of the unpredictability associated with traditional services businesses.