2Bobs—with David C. Baker and Blair Enns
How to Avoid Commodifying Your Offering
Sep 11, 2024
Blair Enns, an expert on business positioning and pricing, dives into the dangers of commodifying services, especially during economic downturns. He discusses how strong branding and strategic thinking can help maintain a business’s unique value. The conversation explores the pitfalls of hourly billing and urges adopting strategic pricing that reflects client value. Additionally, Blair highlights challenges in marketing educational offerings and shares insights on leveraging AI without surrendering perceived value. Practical tips for negotiation are also featured, emphasizing the importance of maintaining distinctiveness.
29:47
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Quick takeaways
- Commodification occurs when services are sold by the hour, diluting perceived value and risking long-term pricing integrity.
- Using technology to scale services through lower-priced offerings can undermine perceived value, highlighting the need for quality differentiation.
Deep dives
Avoid Selling Thinking as Doing
Selling services by billing hours or days leads to commodification of offerings. Selling thought-based services, such as diagnosis and prescription, as units of doing dilutes perceived value, creating a downward spiral. Instead, it is recommended to productize those thinking services with standardized packages that do not attach a specific price tag to the effort. This approach allows professionals to convey their unique expertise while maintaining the integrity of their pricing structure.
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