Question: Hey Mark. I’m doing pricing for services and my question is – Why do you buy services? S.
Answer: Hi S. Although I’m certain what I’m about to say isn’t the answer you are looking for, this is a great opportunity to expand everyone’s thinking.
You asked, why do I buy services. I’m assuming you’re asking about me. I buy them for many different reasons. Here is a sample list of some disparate services:
- I have a bookkeeper to save me time and add expertise.
- I use Quickbooks online to coordinate easily with my bookkeeper and accountant.
- I hire someone to do my taxes because I’m not a masochist. 🙂
- I use WordPress and plugins because it makes doing that job easier.
- I fly on planes because it’s faster than driving.
- Also, I hire a lawn service because I don’t want to do my lawn.
- I hire coaches to teach me what I need to know.
- I hire FedEx or UPS because I don’t want to deliver the package myself.
The point of my rambling list is to say there aren’t one or two reasons why people buy services. If you could take one thing from this blog it’s this: A service is a product. Treat it like a product.
Why Treat a Service Like a Product?
I do appreciate that you’re asking the why question. It’s the right question. Now let’s focus down on your market segment. Why would they buy a service like yours? Here’s the answer: because it solves a problem. Your job is to find that problem and as a great pricing person, figure out the value of solving that problem to your buyer.
People Buy Products to Solve Problems
This is a universal truth. People buy products to solve problems. A product is anything that solves a problem. That could be hardware, software, services, intellectual property, people, anything that solves a problem. In every case, learn what problems your buyer is trying to solve. That is why they will buy your product.
Hope that helps. Now, go make an impact!
**Note: Mark Stiving has an active LinkedIn community, where he participates in conversations and answers questions. Each week, he creates a blog post for the top question. If you have a question, head over to LinkedIn to communicate directly with Mark.
Mark is a pricing expert who helps companies understand value, how to create it, communicate it and capture it. He has a PhD from U.C. Berkeley and an MBA from Santa Clara University, plus 25+ years pricing experience. As an educator, speaker and coach, Mark applies innovative, value-based pricing strategies to guide growth and increase profits for large and small companies.