5 Reasons Why A "Productized" Business Model Is Advantageous

advantages productized business model

Service-oriented businesses that productize their services can enjoy a comparative advantage over their competitors. The business model has benefitted them in many ways, encouraging many other service providers to join the league. 

If you, too, have a service providing firm like an SEO Company, then keep reading this article to find out why productizing your services is an excellent idea. 

With the "productization" of services, you get to enjoy a significant number of advantages. 

Facilitates Easy Evaluation 

It is easier to evaluate the price of a tangible product than a non-tangible service. When determining the price of a service, the receiver looks out for several means of assurance to decide if the quoted price is justified or not, like inquiries about past work, experience in the industry, etc. Thus, productizing is helpful here as it will make your services more tangible and ease out the buying process with your clients. For example, giving out brochures are more useful than explaining the features of your services verbally. 

Sets Predictable Prices 

When you set a predictable cost for your services, it is easier for your clients to make buying decisions. They would also be convinced that each buyer is paying the same price for a given service. For example, if you own a beauty parlor, then make a package deal of offered services and maintain the same price for each customer. In this way, your customers would be convinced and easily be able to decide whether or not they should buy the service. 

Increases Commercial Efficiency

If you are efficient in doing your task, it will be better for your business. You can complete more work within a given time and thus can earn more profits. You will also be able to deliver the services ahead of the scheduled time, which is a great plus for your customers. Ensure that you provide accurate and quality services with efficiency so that you can charge less and deliver more to your clients, which will help you stay ahead of your competitors. 

Improves Consistency

Productized services always maintain the same level of consistency for each of its clients. It means that as a service provider, you will keep the same level and type of service for any client. Of course, there will be customization for each project, but the outcome should maintain consistent quality. Make sure to treat all your customers with an equitable approach. 

Strengthens Credibility 

Credibility is one of the most critical aspects of service providing firms. When customers are buying intangible services, they become more vulnerable to everything. It is the firm's credibility and the people working in it that helps the buyer make the purchase. An assurance of probable success can influence purchase decisions positively. Productizing the services improve credibility by making it more tangible and assuring the buyers with a better service experience. 


Every day, new firms are adopting this concept and finding out new ways to productize their services. With productized services, companies can improve their reputations and provide tangible services to their clients on which they will be able to believe.

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