The art (and the nightmare) of selling services

Selling services, especially consulting, comes with its own set of challenges. So, what are the reasons behind these difficulties? I'm sure you are aware of at least several obstacles.

From explaining intangible benefits to nurturing trust, in this article I'll write about the challenges as well as a few practical strategies to overcome them. This topic is important not only within the consulting realm but also in the broader context of selling services.

The insights are beneficial to both consultants and clients seeking successful collaborations.

?Disadvantages of selling services

Selling consulting services can be challenging for several reasons:

• Services are intangible and often involve providing expertise, advice, and solutions rather than physical products. Potential clients may have difficulty understanding the value they will receive, making it harder to convince them of the benefits.
• Consulting services can be perceived as expensive, especially if clients are primarily focused on immediate costs rather than long-term benefits. Clients might hesitate to invest in services without a clear understanding of how they will see a return on investment.
• Consulting services often involve addressing complex and multifaceted issues, which are not always easy to convey o the client. Communicating the intricacies of services and how they will specifically benefit the client can be challenging, especially if they have limited knowledge of the subject matter.
• Clients are often sceptic. They need to trust that your expertise and solutions will deliver the promised results. Building credibility takes time and requires a track record of successful projects, client testimonials, and other forms of social proof.
• Selling consulting services often involves longer sales cycles, as clients need time to evaluate proposals, consider options, and make informed decisions. Patience and persistence are crucial in navigating these extended timelines.
• Many clients naturally resist change. Implementing recommendations may require clients to make changes to their existing processes, systems, or organizational culture. Resistance to change can impede the sales process, as clients may be hesitant to disrupt their current operations.
• Clients might not be aware of the specific problems they are facing or the potential benefits that consulting services can provide. Educating clients about their challenges and how specific services can address them is an essential part of the sales process.
• People are often impatient. Demonstrating a clear return on investment (ROI) for consulting services can be difficult, particularly if the outcomes are not immediately measurable or if there are multiple variables involved.

To overcome these challenges, focus should be on building strong relationships, being transparent and — most importantly — effectively communicating the value of services.

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Some services are more tangible than others

Let's use a simple example. House cleaning services are a type of service that many people pay for without excessive questioning.

Both cleaning services and consulting services share similarities in terms of providing convenience, expertise, customization, and a peace of mind. But the result of cleaning is visible right away and clients know exactly what to expect - it's something familiar to them.

But just as house cleaning services provide value by maintaining a clean and organized living environment, change and management consulting services offer similar benefits to businesses by maintaining a clean and organized business environment, helping companies navigate and implement organizational changes effectively.

We can even go as far as calling ?consultants "organizational cleaners", ensuring that the business is operating efficiently, adapting to changes, and maintaining a healthy and productive work environment.

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What about SaaS??

Although SaaS (Software as a Service) isn't physically tangible, buyers don't exhibit reluctance towards purchasing it.

The lower initial costs associated with SaaS subscriptions make it an attractive option, while the scalability of these solutions allows businesses to adapt as their needs evolve. The convenience of cloud-based accessibility enables users to work from anywhere, and rapid implementation minimizes downtime.

Additionally, the simplified IT infrastructure, predictable pricing models, and trial periods for evaluation collectively contribute to a sense of ease and confidence among buyers.

In a way, buyers perceive SaaS offerings as products or tools, albeit with unique characteristics that set them apart from traditional physical products. While SaaS solutions are intangible, they share similarities with products in terms of the value they deliver, the features they offer, and the benefits they bring to buyers.

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Productivization of services

So, the answer may be in “productivization“ of services, trying to make services more tangible and easier to visualize the result.

The concept of productivization of services involves adapting principles from product-focused industries to service delivery. This approach aims to optimize service efficiency, consistency, and scalability by standardizing processes, automating tasks, and utilizing measurable metrics for quality control.

By integrating technology, services can be made more accessible and customer-centric, while still allowing for customization within defined boundaries.

Furthermore, service providers can package related services together, creating value-added bundles that offer comprehensive solutions to customers.

Here are a few examples of productivization across different industries:

Fitness: Personalized Training Package?

Fitness centers offer a productivized package with tailored workouts, automated progress tracking, and virtual coaching, optimizing workout efficiency and results.

Logistics: Supply Chain Management Suite

Logistics companies provide a suite of tools for streamlined inventory management, order processing, and automated shipping, enhancing supply chain efficiency.

Marketing: Social Media Campaign Bundle?

Marketing agencies offer a package with automated social media scheduling, content creation tools, and performance analytics for comprehensive campaign management.

Travel: Vacation Planning Package

Travel agencies offer an all-inclusive package including itinerary planning, booking automation, and travel insurance, streamlining vacation arrangements.

Home Maintenance and Services

Home service providers offer a subscription package for routine maintenance tasks like cleaning, lawn care, and HVAC system check-ups, ensuring consistent upkeep.

Food Industry: Meal Prep Subscription

Restaurants offer a subscription for pre-planned meals with automated ordering, delivery scheduling, and nutritional tracking, simplifying healthy eating.

Many of the examples provided above involve subscription-based or fixed-fee models. Subscriptions are very common with productivization because they offer benefits such as recurring revenue, customer retention, and ongoing engagement. But productivization principles can be applied to a variety of pricing structures.

The key idea is to optimize service delivery, efficiency, and customer value, regardless of how the service is monetized.

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“Why does it cost so much?“

Consulting services often come with a higher price tag because they bring specialized expertise and solutions to address complex challenges and help businesses improve.

Consultants invest significant time and resources in understanding client's unique situation, analyzing data, and designing tailored strategies. Their knowledge and experience are valuable assets that can lead to more effective decision-making, streamlined processes, and ultimately, better results.

Additionally, consultants often work on a project basis, dedicating intensive efforts over a specific period. This focused attention ensures a thorough and comprehensive approach to solving client's business problems. While the initial cost might seem higher, the potential benefits in terms of increased efficiency, growth, and long-term success make consulting services a valuable investment for the future.

Consulting services are a form of service with a lasting impact.

When clients engage with consultants, they are not just purchasing a one-time service, but investing in expertise and guidance that can lead to significant and lasting improvements for their business. The impact of consulting services often extends beyond the duration of the engagement.

In essence, consulting services offer a partnership that empowers companies to achieve lasting positive changes and achieve business objectives more effectively.

Some believe that services should be cheaper because you “only invest time“. But time is everything.

Consultants don't sell time. They sell high value solutions, which require years of education and experience.

They sell the outcome, which will generate ROI much greater than the cost of the service.

Essentially, clients are purchasing the expertise and guidance that leads to tangible and meaningful results for their business, making the investment in consulting services well worth it in terms of the lasting impact they create.

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Choosing clients and saving time

Carefully selecting clients is a crucial aspect of running a successful consulting or some other service business. Taking on the right clients can significantly impact work quality, job satisfaction, and overall business success.

We've all experienced clients who are hard to work with, who take up a lot of time and energy, without bringing the revenue which would be worth it.

Opting for clients whose needs align with your expertise and values ensures a better fit and higher chances of success. Assessing potential clients based on factors like their goals, communication style, willingness to collaborate, and mutual respect is very important.

This selective approach not only enhances the quality of work but also fosters positive, productive client relationships, leading to more successful outcomes and long-term success.

Yes, declining any clients may seem hard. But if there are a lot of red flags in the initial meeting, it's better to save time and use it on someone who will be a better choice for the company.

To sum up, selling consulting services is not a simple task. Consultants face challenges like explaining intangible benefits and proving their expertise, building trust and tailoring solutions for each client.

It's about finding the right approach to show the value of consulting services and creating successful partnerships that benefit everyone involved.

The clients should be focusing first on the value they get from the service, and only afterwards on the price.

This topic is extremely wide and there is so much more to say, such as value-based pricing, qualifying and educating the clients, risk mitigation, and more. I'll leave it for the future articles, stay tuned!

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