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Pricing

A packaged offer is a decision you make once instead of every time

Turning a service into a defined thing with a fixed scope and a fixed price removes most of the work of selling it, and costs you the ability to shape every job around the client in front of you.

By Kabir Anand3 min read

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Bespoke means negotiating from nothing, repeatedly

A business that quotes every job individually starts each sale at the beginning. What does the client want, what would that involve, how long would it take, what should it cost, and how do we describe all of that in a document. Two hours of unbilled work per enquiry is not unusual, and the enquiry may go nowhere.

That is unavoidable for genuinely custom work and it is enormous waste for anything you have effectively done before. Most small businesses have three or four jobs they do repeatedly with minor variations, and those are being priced from scratch every time out of habit rather than necessity.

What a package actually consists of

It is four things: a defined scope stating what is included and what is not, a fixed price, a described process so the client knows what will happen and when, and a name so it can be referred to without explanation.

The name matters more than it sounds. A thing with a name can be recommended by a client to somebody else without them having to describe your entire business, and it can be compared by the buyer against a decision rather than against an unknown. Both of those shorten the distance between an enquiry and a yes.

It is assembled from what you already sell

The mistake is to invent a package from what you would like to sell. The ones that work are extracted from what has already been bought — you look back over a year of jobs, notice that eleven of them were substantially the same, and write down what that job actually is.

That history also tells you what it costs to deliver, which is the piece that makes the fixed price safe rather than reckless. Packaging work you have never done is just a fixed price on an unknown, and it’s the fastest way to make the whole idea look like a bad one.

Buyers find a defined thing easier to accept

An open-ended service asks the client to trust that the eventual cost will be reasonable, and to imagine what the process will feel like. A package answers both in advance. For a nervous buyer, particularly one who has been burned by a bill that grew, that is worth a great deal.

It also makes the decision smaller. Comparing suppliers is difficult; deciding whether a specific, priced thing is worth having is much easier, and it is a question people can answer without a meeting. That is why packaged offers convert better even when they aren’t the cheapest option available.

The costs are the jobs that do not fit

Some enquiries will be nearly the package but not quite, and every one of them is a temptation to bend it. Bending it repeatedly is how a package quietly turns back into bespoke work at a fixed price, which is the worst of both arrangements.

The usual defences are a stated list of exclusions, a small number of priced additions, and a willingness to say that this particular job needs a proper quote instead. Having a package does not oblige you to sell only that. It obliges you to be clear about when you’re selling it and when you are not.

There is a second cost, which is that a package fixes your price in public and in advance. A client whose job would have supported a considerably higher figure now pays the packaged one, and you won’t always know which clients those were. That loss is the price of the efficiency, and for most small businesses it is a good trade — but it is a trade rather than a free improvement.

The margin arrives through repetition

A package should get cheaper to deliver over time. Doing the same job repeatedly produces a process, a set of materials you keep to hand, a way of explaining things and a list of the parts that usually go wrong. All of that reduces the hours without reducing the price.

That is the real return, and it’s why the price should not be set from the cost of the first one. Price it from what the outcome is worth and what the market supports, then let the improvement in delivery accumulate to you. A business with two or three efficient packaged offers is doing something a purely bespoke operation cannot: getting better at a specific thing rather than starting again every month.

Pricingpricingservicesquotingplanning
Kabir Anand
Deputy editor, Biz Wealth Focus

Kabir writes about starting out, pricing, cash flow, mostly the parts other people skip and is unreasonably interested in the detail nobody else checks.