I Broke Down Every High Margin Service Into 6 Buckets [Delivery Cube]

Summary

• Focus not only on customer acquisition but also on making existing customers more valuable.
• Enhance your service business by leveraging the "Service Delivery Cube" with six key facets to maximize value.
• Evaluate the current client service ratio: one-on-one, small group, or one-to-many, and consider expanding offerings along these lines.
• Consider the client involvement continuum: Do It Yourself (DIY), Done With You (DWY), or Done For You (DFY). DIY is harder to sell, DWY offers a learning component, and DFY, although operationally complex, is the easiest to sell.
• Evaluate and potentially diversify the support level your business offers, such as text, chat, email, phone, or Zoom.
• Consider how clients consume the provided information, whether through live sessions, recorded content, written materials, audio, or video.
• Find opportunities to increase speed and convenience, as people will pay for faster services, like VIP support with quicker response times.
• Creatively rethink pricing with the "1-10x to 1/10" mental exercise: If you increased the price by 10x, what additional value could you add? Conversely, if the price was 1/10th, how could you still deliver more value?
• Use the Service Delivery Cube to unearth hidden value and increase revenue without incurring additional costs.
• Apply these considerations to potentially repackage services more attractively, providing more value with existing resources.

Video

How To Take Action

I would suggest looking at what you currently offer and find ways to add more value to your existing customers before trying to get new ones. That's where the "Service Delivery Cube" comes in handy. It has six sides to help you maximize value. Here's how you can use it:

• Client Service Ratio: Are you offering one-on-one, small group, or one-to-many services? Think about how you could shift or expand what you do.

• Client Involvement: Are your services DIY, DWY, or DFY? People love DFY because it’s the easiest, though it can be complex to deliver. Could you change or mix these types to better meet customer needs?

• Support Level: Look at support methods like text, chat, email, phone, or Zoom. Could offering faster or more personalized support add value for your clients?

• Information Consumption: Do customers get live sessions, recorded content, written materials, audio, or video? Consider different ways they could access what you offer.

• Speed and Convenience: Everyone values their time, so faster service equals more value. Could you speed up delivery or make your service more convenient?

• Pricing Creativity: Try the "1-10x to 1/10" mental exercise. If your price went up 10x, what would you add? Or, if you cut to 1/10th, how could you still deliver more value? This can spark new ideas for your current prices.

Take these six points and apply them to your services. Think creatively and reshape what you provide without extra costs. By looking at your services through these facets, you can repack those same offerings in a more valuable, attractive package. Try it with your team, and remember, focus on existing resources to bring more value and revenue your way.

Quotes by Alex Hormozi

"One of the key ways of doing that is delivering more valuable services"

– Alex Hormozi

"Fast beats free"

– Alex Hormozi

"People will pay for speed"

– Alex Hormozi

"The easier it is for you to fulfill, the harder it tends to be to sell"

– Alex Hormozi

"Use what you know, excess capacity, or sawdust"

– Alex Hormozi

Full Transcript

entrepreneurs and business owners my name is alex ramose and in the last four years we've done 120 million in sales across my four company i just want to share some of the lessons that have worked well for us in this time period so one of the questions we get is like how do i make more money right and a lot of times people think about acquisition stuff and sometimes it is acquisition based but the other half the equation is is making the customers more valuable all right one of the key ways of doing that is delivering more valuable services right and so services in general right you can think about this from a consulting basis you can do methods from a service page whatever right so this is not for physical product-based businesses it's for service type businesses all right and so what i want to walk you through is what i call the service delivery cube it's cubed because there's six sides you're gonna see the chart that i'm showing you right here is six but i'll walk through each one of them this is a creative process that i use when i'm thinking about how can i expand product lines what thing can i do with the existing resources that i have that can provide more value to my customers and you'd be amazed that if you walk through this cube so many opportunities will jump out at you using what you know excess capacity or or sawdust right so if you if you were if you had a lumber mill and all you do is you sell lumber there's all this sawdust that comes up on the ground and it's like how can we monetize the sawdust right we can we can make sandpaper out of it we can put it into pellets so that they can make pellet stoves right so how can we how can we use what we already have without incurring more cost and drive more value to our clients by repackaging the same thing and so this is called the service delivery cube all right so there's there's six components to this one is the ratio all right which is what's my client ratio for a service what if i wanted to do something one-on-one what if i want to do small group what if i want to do one-to-many all right one two unlimited amount so whatever i'm doing now i like to think about is there a way that i could do this one on one is there a way that i could do this in a small group is this way is there a way i could do this one to many right so this is the first kind of filter that i'll look any any service or potential other offering through the next is what extent is my client going to be involved is it going to be d do it yourself is going to be done with you right where we're going to help them implement you know a change of some kind or is going to be done for you his hands off they just pay us money and they get this result all right and so these are varying levels of value and service all right what's interesting about this one is that i i like there's another video i'll make it another time called the sales to fulfillment continuum but basically the the the harder the easier it is for you to fulfill the harder it tends to be to sell and so do it yourself is one of the hardest things to sell to someone because it's such low value because all of the efforts on them done with you is a little bit easier to sell because you have a little bit of an educational component so they feel like they're learning the skill right and it's a little easier for you to fulfill on and then finally the easiest thing to sell is done for you because someone just gives you money and they get the result and it's the shortcut right but this tends to be the most operationally complex there are you know billion dollar companies in each of these in each of these spaces they're just very on you know the more do-it-yourself it is the more of a marketing and acquisition company it is uh the more done for you it is many times these types of companies can provide such such value that people just come to them right and so that's the second of the service delivery cube the things that i'm looking at so i might already have one of these is there a way i could go up or down on this scale right the third is what i would consider support level all right and where they're going to get support all right so are they going to be supported in this process via text are they going to be supporting this process via chat there can be some process via email via via uh you know expert representative via phone via zoom what's the channel or channels that they're going to have access to me and my team all right excuse me the uh the fourth is going to be how do i want them to consume the information all right so if i'm going to have some sort of uh service delivery there's going to be some sort of onboarding process right do i want this to be live right do i want this to be recorded do i want this to be written right do i want this to be do i want this to be audio right like if you're listening on the podcast so i want to have like audio book versions of this do you want this to be video right and all of these things can be live or recorded so those are kind of the variations in terms of how i want them to consume right this is the consumption piece consumption consume the information right and so we're going through the service delivery cube so i'm thinking it what is what's the ratio and the thing is is all of these are a lot of variables and that's okay the point is that if you already have something you can look at where it fits on all six of these things and say can i move it one to the left or one to the right right and if you think about it that way you'll be able to excuse me a little tickle there be able to come up with a new product that might be more valuable and maybe even less cost to you right and that's what we're trying to find is i want to unearth where there's hidden value within my company using the existing resources i have that can drive more revenue and profit to the business all right the next is speed and convenience all right so one of my favorite sayings is that fast beats free and so if you look at you look at uber people could walk they take uber you look at fedex they could use u.s postal service but instead they pay more to get it overnight spotify there was free free music on the internet but it was a pain in the ass you know download all that stuff instead spotify came in and it was you could pay to not have the have the inconvenience right so speed in and of itself is something that people will pay for all right so is there a way that i can can i that i can cut the results in half the time is there that i can speed up my support so maybe i have normal support which is you know you get a repo apply at 24 hours but then i have vip support which is you get a response in 60 minutes or less right so it's all my existing resources but just put and repackaged in a different way with a different expectation for the client right and a lot of people will pay for that so that's an easy one that we can deliver value for all right so it's the fifth one and then the last one excuse me there's more of a mental exercise which i call the one 10x to 110. all right and this is a creative process that i like to think of which is if i were to 10x my price of this thing what else would i include right what else would i be willing to do right and on the flip side if the price of what i if i did was one-tenth if i if i had to fit it into one-tenth the price and i had to deliver more value than i am right now how would i do it and so there are two those are two creative questions from different ends of the scale so if i had a thousand dollar product for example if my thing was ten thousand dollars what would i be able to do that i'm not doing now right and a lot of times some of the creative ideas you have you could actually still do right now at these price points and figure out how to jam pack more value into your offering and on the flip side if i offered my product for 100 and i said i had to make it more valuable than it currently is what else would i include what else would i build into this thing right and so by thinking through though both of those processes i can usually come up with new ways to repackage my products and offerings and services uh to become more valuable all right so the service delivery cube the reason that i go through this is because i want to see how i can find excess capacity in my business to generate more revenue and profit without taking on more expenses reliability and i look at where my current products exist on this cube and think could i go one to the left or one of the right on any of these six so i'll same again from the top we've got the ratio of is it going to be 101 it's going to be small group is going to be one of many i've got what what level of effort are they going to be putting in is it do-it-yourself done with you or done for you right can i move either way to on this the third is going to be what level of support or what channels of support excuse me are the clients going to get are they going to get only only text are they going to get only phone calls are they going to get phone and call or can i have different levels based on these channels like we have our lower level which is just email and we've got a higher level which is phone and zoom right the fourth is gonna be how i want them to consume this do i want this to be a live experience or would be a recorded experience do i want this to be written audio or video how do i want them to consume information for me as a business fifth is how can i make this more convenient or less convenient how can i make this faster for them how can i increase the speed of communication with them right how can i deliver that in a way that's going to be in a very real way more valuable people pay for speed all right one of the easiest things in the entire world is look at any service category that exists and see if you can deliver the result in half the time just focus on that right i mean amazon prime think about it they they created an entire a movement you know with it they changed and transformed the entire e-commerce space simply by saying we're gonna get stuff to everyone in two days right now one day and now hours right and then finally the creative process of 10x to one tenth if i had if i if i were selling this for 10 times more than i am right now what would i include that i'm not and then can i include those in my current offering because i just didn't think about it and then if i had to deliver more value than i currently am and i was excuse me do this for one tenth of price what would i jim pack you to that thing and so this is the service delivery cube hopefully you found this valuable so i don't choke on myself from this tickle that i'm trying to keep down use this think through it and if you're if you're meeting with your team and thinking how can you provide more value this is one of the easiest cubes that i like to walk through so lots of love keep being awesome catch you on the flip side like subscribe comment tell me some questions uh and i will post some answers to them so keep it awesome catch you soon bye