Packaging - Protecting Your Time
Summary
In this episode, Joel and Jed discuss the importance of boundaries and how packaging can protect your capacity. They emphasize the need to clearly define what is included in each package and to have conversations with clients about additional services that fall outside the scope. They also highlight the importance of charging for extra work and not giving away services for free. Setting boundaries and having confidence in your pricing and value are key to maintaining a profitable business.
Keywords
packaging, boundaries, capacity, pricing, value, scope creep, tier structure, core plus extras, scoping
Takeaways
Packaging your services can help you budget and protect your capacity.
Clearly define what is included in each package to avoid scope creep.
Have conversations with clients about additional services that fall outside the scope and charge for them.
Setting boundaries and having confidence in your pricing and value are essential for a profitable business.
Chapters
00:00 Introduction
00:20 Packaging and Pricing Confidence
01:18 Protecting Your Capacity with Packaging
02:16 Building Boundaries into Contracts
04:13 Avoiding Scope Creep and Giving Away Work for Free
09:59 Charging for Additional Services
11:40 Setting Boundaries and Having Confidence in Pricing
12:31 Conclusion
How Packaging Can Protect Your Boundaries and Capacity
In business, moving away from an hourly rate to offering packaged services can be a game-changer. It's not just about pricing; it's also about setting and maintaining boundaries to protect your capacity. Here's why packaging is crucial and how it can help you manage your business more efficiently.
The Benefits of Packaging
One of the most significant advantages of packaging your services is the ability to plan and budget more effectively. Knowing what income to expect over a year allows for better decision-making, whether it's hiring staff or investing in your business. Additionally, packaging helps streamline your operations. By setting clear expectations with your clients, you can manage your workload more efficiently and avoid overcommitting yourself.
Protecting Your Boundaries
Once you’ve established a package with a client, it's essential to protect it. Over time, you might find that clients ask for additional work that wasn’t part of the original agreement. This is where setting boundaries becomes crucial.
One effective strategy is to build flexibility into your contracts. For example, if a client’s needs change and they require additional services, you should have a clause that allows you to pause and renegotiate the terms. This approach ensures that any extra work is properly scoped and priced, rather than being done on the fly and potentially for free.
Avoiding Scope Creep
Scope creep is a common issue in many industries, where clients start asking for work that wasn’t initially agreed upon. This can lead to additional, unpaid work that drains your resources. The key to avoiding this is to have a clear and detailed package structure. Whether you offer tiered packages (like bronze, silver, gold) or a core package with optional extras, it’s important to clearly define what’s included in each level.
For example, if a client asks for additional financial reports outside of your agreed-upon services, it’s important to slow down and clarify that this work falls outside of the original package. This allows you to discuss additional fees before starting the extra work.
The Importance of Confidence
It's natural to feel hesitant about having these conversations, especially with long-term clients who may be accustomed to getting extra work for free. However, it's important to stand your ground and value your time and services appropriately. Clients may push back, but with clear communication and confidence, most will understand the need for additional charges for extra work.
Starting Fresh with New Clients
Implementing these boundaries can be challenging with existing clients, but it’s much easier with new ones. When scoping a new job, you have the opportunity to set clear expectations from the start. This way, both you and your client know exactly what to expect, and any additional requests can be managed with a clear process in place.
Final Thoughts
Packaging your services not only helps you manage your workload and income but also sets the stage for a healthier business-client relationship. By clearly defining what’s included in your packages and being confident in enforcing those boundaries, you’ll protect your business from scope creep and ensure that you’re compensated fairly for the work you do.
If you have any questions about how to package your services effectively, feel free to reach out to us on Instagram or through our website at tiltcoaching.com.au. We'll be back next week to discuss how to scope a new job with a new client. Stay tuned!
