Creating Implementation Packages
Creating Implementation Packages Packages are offerings of a clearly defined deliverable or result that is delivered within a specific timeline Requires that you are clear on the specifics of the project, so that you are able to deliver on the commitment in a profitable structure. Another way to take “time” out of the equation so you don’t need to charge hourly and be trapped by the time you have available to do the work.
Benefits of Packages for you: • Increased revenues – you can charge more for a package than you would for hourly work • Discontinue tracking time – woo hoo! • Services are established – no grey area • Get paid for value, not time • Potentially double (or triple) your income
Benefits of Packages for your clients: • • • • • •
No surprise invoices No “checking in” Clarity around services provided No confusion on too much work or too little Relief of calculating ROI each month Results regardless of time
What kind of package could you create? Approach this from the perspective of: “Charge the most for what comes easiest to you” Don’t try to create a package based on something brand new that you (or your team) doesn’t know what to do – too much of a headache!
• What do you like to do? Copyright 2014 Online Business Manager (a division of 901691 Alberta Ltd.) Toll Free 1-877-576-2229 | Support Email: [email protected] | www.onlinebusinessmanager.com
• • • •
What do you have lots of experience in? What are you really fast at doing? What are clients asking for? Who on your team can help?
What to include in a package The deliverable/result – what exactly will the client get?
The parameters – what specifically will you do and NOT do (or include)
Resources – what (or who) do you need to fulfill the project
Copyright 2014 Online Business Manager (a division of 901691 Alberta Ltd.) Toll Free 1-877-576-2229 | Support Email: [email protected] | www.onlinebusinessmanager.com
A timeline – a clear start and end date
Expectations of the client – what do they need to do?
Additional expenses – systems, specialists, etc
Upsells or Ongoing support – what will you offer after the project is done?
Copyright 2014 Online Business Manager (a division of 901691 Alberta Ltd.) Toll Free 1-877-576-2229 | Support Email: [email protected] | www.onlinebusinessmanager.com
Be Ready for… • Scope creep – when a package (project) grows into much more than you planned for…. This can certainly happen! You need to be clear on boundaries, willing to say “no” as required or be ready to revise an agreement and upsell/charge more for extra work. • Delays – your clients will probably be the biggest bottleneck ;) Make sure you are extra clear with them upfront re: what you need THEM to do and their deadlines… and at the same time know that you will probably need to give them a “loving nag” to get stuff done. • Tweaking after the first time – expect to change your price and/or process after your first project or two. It usually takes 3 times of delivering a new project/package before you have the process, elements and timelines nailed down. You might even lose money the first couple of times, which isn’t ideal but may happen as part of the learning curve.
Pricing Pricing is so much about you knowing your own worth! As much as there are formulas ultimately it’s about you deciding what you want to charge, BELIEVING you are worth it and going for it. (If you don’t believe that you are worth what you want to charge you won’t be able to sell it) • Consider your implementation rate vs. consulting rate – if you are including consulting in a package that is usually 5x your regular implementation/doing rate. I.e.: if you charge $50/hr to do stuff, your strategy/consulting rate could be $250/hr. • Revisit your Money Game - What is your financial gap? Be sure to consider this in your pricing to ensure that your package price will meet those objectives. • Ask yourself – What price would make this worth my time? There is ultimately a gut check here… if you come up with a price but it doesn’t feel like it’s worth your time, then you aren’t going to enjoy delivering on that project.
Copyright 2014 Online Business Manager (a division of 901691 Alberta Ltd.) Toll Free 1-877-576-2229 | Support Email: [email protected] | www.onlinebusinessmanager.com
My favorite package pricing formula: • Consider the process and work out the specific resources of time and additional team members (if required) –
Take the time total x hourly rate
–
Take that total x 2
–
Your package price falls somewhere in between – to accommodate for adjustments and make it worthwhile
• Example: 20 hours x $50/hr = $1000 x 2 = $2000 Set package price at $1600 (feels like it’s worth it to you)
Checklist for Creating a Package Use this checklist to set dates/milestones for each step of the process.
Confirm the deliverable that will be delivered via this package (the end result) Map out the elements of the package (as outlined above) Confirm pricing details Get various people in place to deliver on the package (as required) o Who is going to do the work? o Who is going to be in charge of communication with client? Create a one-page outline of your package to send to potential clients Prepare to accept payment for your package (via shopping cart? PayPal?) Create an agreement for the package (SOOO important) Consider your sales process for offering the package (who is your target market?) Prepare to have the sales conversation – know your key questions Prepare the intake process for a new client Map out the project plan/timeline to complete the project Plan communication points with client along the way (weekly calls? Etc)
Copyright 2014 Online Business Manager (a division of 901691 Alberta Ltd.) Toll Free 1-877-576-2229 | Support Email: [email protected] | www.onlinebusinessmanager.com
Benefits of Packages for you: • Increased revenues – you can charge more for a package than you would for hourly work • Discontinue tracking time – woo hoo! • Services are established – no grey area • Get paid for value, not time • Potentially double (or triple) your income
Benefits of Packages for your clients: • • • • • •
No surprise invoices No “checking in” Clarity around services provided No confusion on too much work or too little Relief of calculating ROI each month Results regardless of time
What kind of package could you create? Approach this from the perspective of: “Charge the most for what comes easiest to you” Don’t try to create a package based on something brand new that you (or your team) doesn’t know what to do – too much of a headache!
• What do you like to do? Copyright 2014 Online Business Manager (a division of 901691 Alberta Ltd.) Toll Free 1-877-576-2229 | Support Email: [email protected] | www.onlinebusinessmanager.com
• • • •
What do you have lots of experience in? What are you really fast at doing? What are clients asking for? Who on your team can help?
What to include in a package The deliverable/result – what exactly will the client get?
The parameters – what specifically will you do and NOT do (or include)
Resources – what (or who) do you need to fulfill the project
Copyright 2014 Online Business Manager (a division of 901691 Alberta Ltd.) Toll Free 1-877-576-2229 | Support Email: [email protected] | www.onlinebusinessmanager.com
A timeline – a clear start and end date
Expectations of the client – what do they need to do?
Additional expenses – systems, specialists, etc
Upsells or Ongoing support – what will you offer after the project is done?
Copyright 2014 Online Business Manager (a division of 901691 Alberta Ltd.) Toll Free 1-877-576-2229 | Support Email: [email protected] | www.onlinebusinessmanager.com
Be Ready for… • Scope creep – when a package (project) grows into much more than you planned for…. This can certainly happen! You need to be clear on boundaries, willing to say “no” as required or be ready to revise an agreement and upsell/charge more for extra work. • Delays – your clients will probably be the biggest bottleneck ;) Make sure you are extra clear with them upfront re: what you need THEM to do and their deadlines… and at the same time know that you will probably need to give them a “loving nag” to get stuff done. • Tweaking after the first time – expect to change your price and/or process after your first project or two. It usually takes 3 times of delivering a new project/package before you have the process, elements and timelines nailed down. You might even lose money the first couple of times, which isn’t ideal but may happen as part of the learning curve.
Pricing Pricing is so much about you knowing your own worth! As much as there are formulas ultimately it’s about you deciding what you want to charge, BELIEVING you are worth it and going for it. (If you don’t believe that you are worth what you want to charge you won’t be able to sell it) • Consider your implementation rate vs. consulting rate – if you are including consulting in a package that is usually 5x your regular implementation/doing rate. I.e.: if you charge $50/hr to do stuff, your strategy/consulting rate could be $250/hr. • Revisit your Money Game - What is your financial gap? Be sure to consider this in your pricing to ensure that your package price will meet those objectives. • Ask yourself – What price would make this worth my time? There is ultimately a gut check here… if you come up with a price but it doesn’t feel like it’s worth your time, then you aren’t going to enjoy delivering on that project.
Copyright 2014 Online Business Manager (a division of 901691 Alberta Ltd.) Toll Free 1-877-576-2229 | Support Email: [email protected] | www.onlinebusinessmanager.com
My favorite package pricing formula: • Consider the process and work out the specific resources of time and additional team members (if required) –
Take the time total x hourly rate
–
Take that total x 2
–
Your package price falls somewhere in between – to accommodate for adjustments and make it worthwhile
• Example: 20 hours x $50/hr = $1000 x 2 = $2000 Set package price at $1600 (feels like it’s worth it to you)
Checklist for Creating a Package Use this checklist to set dates/milestones for each step of the process.
Confirm the deliverable that will be delivered via this package (the end result) Map out the elements of the package (as outlined above) Confirm pricing details Get various people in place to deliver on the package (as required) o Who is going to do the work? o Who is going to be in charge of communication with client? Create a one-page outline of your package to send to potential clients Prepare to accept payment for your package (via shopping cart? PayPal?) Create an agreement for the package (SOOO important) Consider your sales process for offering the package (who is your target market?) Prepare to have the sales conversation – know your key questions Prepare the intake process for a new client Map out the project plan/timeline to complete the project Plan communication points with client along the way (weekly calls? Etc)
Copyright 2014 Online Business Manager (a division of 901691 Alberta Ltd.) Toll Free 1-877-576-2229 | Support Email: [email protected] | www.onlinebusinessmanager.com
