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Are Productized Services Overrated?

Are Productized Services Overrated?

In yesterday’s newsletter, I wrote about how I like the productized service business model of Scribe, the book writing and marketing company. A productized service is basically a limited scope of services offered for a fixed price. This is in contrast to doing custom services in a typical service business where you have to quote and sell each project. The TropicalMBA has a more nuanced discussion with Maryl Johnston, founder of the online bookkeeping firm Bean Ninjas, around that business model. They are some drawbacks, such as the long time until profitability compared to just consulting.  Also, a general productized service business can be a race to the bottom as new competitors enter and lower prices.

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