Productized Services: Feedback for

Over on Indie Hackers, Zencentric asks for feedback about his team’s new productized service offering,

is it clear what we are offering?
is the price too low? (we know it’s low but don’t know if it’s too low)

Top of the page for

Pricing options for

About The Price…

It looks too good to be true. The pricing creates anxiety. Unlimited requests for that price? Good results for such a low monthly price? (Further down the page there are some before/after examples of their work – noteworthy quality.)

Maybe there’s something to it. Maybe purplesoundstudios is shipping this work to other countries and using geo-arbitrage and cost-of-living differences to make it a win-win. If that’s the case, then sure, it’s a good offering, and I’d add an FAQ explaining how they can hit that low price and offer that level of quality, and maybe that’s going to be enough.

Or maybe it’s an introductory price. But then since the price is the main feature of what makes this service offering unique and spreadable, increasing the price would kill the offering.

But if the founders are thinking this is the only price that’s suited for this kind of economy, I’d consider this other idea: think of the other value that could be offered.

The Two Options Actually Offer The Same Value…

Right now, two options are available: one that’s basic, and another with more of the same.

More of the same? Yes, the Basic package promises a better sound. The Premium package promises a better, better sound.

A better sound is the overall value of the whole service offering. That’s a given. But both of those options offer only one value: raw capacity.

And raw capacity becomes a commodity. And a commodity gets them stuck at a low price. And when they won’t be able to scale the raw capacity value, their overhead costs might balloon, and that’ll be the end.

The Biggest Opportunity: Options That Compete Against Each Other

Assuming this is a small team and the strategy is not to ship this raw capacity to other countries, then we’re left with the question: what other value can they provide?

While a better sound is the overall promise, the single offering creates a yes/no choice in the mind of the visitor. “We offer raw capacity, take it or leave it.”

Other situations the visitor might be going through:

  • “When I’m putting together a new podcast, I want to look for professional sound expertise so I can get a unique, professional sound on my own.” Value: innovation, exploring possibilities, learning.
  • “When I’m ramping up production of my YouTube channel and I’ve found the sound I like, I want to automate the sound engineering so I can get on with the creation of new material for my audience.” Value: automation, quality guarantees, availability.
  • “When I’m creating something completely new and I’m hitting my own limits in sound engineering, I want to look for other sources of inspiration so I can develop my tastes and find a new creative thread.” Value: new perspectives, innovation, exploring possibilities, learning.

What if their visitor:

  • Wants their undivided attention for a short amount of time?
  • Wants to jam with them over some ideas, innovate with their sound, get trained…
  • Wants to learn how to do it themselves?

It’s tempting to think this will dilute their service offerings (having too many choices), but in fact, it might strengthen their authority on the subject.

And, more importantly, it might offer options that will force the visitor to choose amongst their other services, instead of going elsewhere.

This approach creates what’s called a value-ladder. Every rung of the value-ladder adds more value, takes more risks for the client, is more custom than the previous one.

How About This Value-Ladder for purplesoundstudios?

Let’s imagine these offerings instead:

Top of the Ladder:
A Two-Day Jam Session

$$$$ for two days

Value: Availability, Innovation, Exploring Possibilities, Learning New Things

Middle of the Ladder:
Your Audio Team (Monthly Retainer)

$$$ / month for five requests

Value: Certainty of good results, weekly process automation

Bottom of the Ladder:
One-time Audio Enhancements

$$ per block of 140 minutes, satisfaction guaranteed, 4 day turnaround

Value: Certainty of good results, quick turnaround

The overall promise of “better sound” is kept throughout all of the options.

Each option forces the visitor to consider the other options.

  • 140 minutes won’t cut it? Look to our monthly price.
  • A monthly thing is too much of a commitment? Try a sample of 140 minutes to start.
  • Want more availability but not at a monthy rate? What about two days of focused attention for your project?

So consider a value-ladder when you find yourself stuck offering raw capacity for a low price. You’ll create higher-priced, more valued offerings, help the visitor choose amongst your own alternatives, and be more helpful to the struggle they came to you to get solved.

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