November 16, 2018

How do you value price a productized service?

Two things I talk about quite a bit are value pricing and productized services.

As people start to learn more about these two things, they get confused because it seems impossible to value price a productized service.

And that’s correct!

By my definition of these terms, value pricing requires having a conversation with a prospective client before presenting a price, and a productized service requires that you post a published price on your website.

So the question arises:

“How do I talk to a client first to set a value price for productized service if I’m posting one fixed price for everyone on my website?”

The answer is: “You don’t!”

Productized services and value pricing are two ways to ditch hourly billing but there’s no good way to use them together on the same offering.

There’s nothing stopping you from offering both value priced custom projects and also productized services to your clients. In fact, they can work together quite nicely as different rungs of your product ladder. It’s just not feasible to value price a productized service.