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

0:00Entrepreneurs and business owners, my name is Alex Hermosi and in the last 4 years we've done 120 million in sales across my four companies. 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

0:16acquisition based. But the other half the equation 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 think about this from a service based whatever, right? So, this is not for physical product based businesses, it's for service type businesses, all right? And so, what I would have walked you through is what I call the service delivery cube. It's cube because there's six sides. You're going to see the chart that I'm showing you right here is six. And I'll walk

0:43through 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

1:10can 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,

1:24there is 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 to 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

1:52service or potential other offering through. The next is what extent is my client going to be involved? Is it going to be do do it yourself? Is it going to be done with you, right? We're we're going to help them implement, you know, a change of some kind, or is it going to be done for you? It's 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 at another time called the sales to fulfillment continuum, but basically the

2:22the the harder the easier it is 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 effort's 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

2:48tends to be the most operationally complex. There are, you know, billion-dollar companies in each of these in each of these spaces. They just vary on, you know, the more do it yourself it is, the more of a marketing and acquisition company it is. The more it 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 queue of 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

3:17level, 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 supported in this process via chat? Are they going to be supported via email? Via via you know, expert representative? Via phone? Via Zoom? What's the channel or channels that they're going to have access to me

3:38and 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, do I want to have like audio book versions of

4:07this? Do I 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 looking at 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

4:32to the left or one to the right?" Right? And if you think about it that way, you'll be able to Excuse me. 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 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

5:02look at you look at Uber. People could walk, they take Uber. You look at FedEx, they could use US Postal Service, but instead they pay more to get it overnight. Spotify, there is free free music on the internet, but it was a pain in the ass you had to download all that stuff. Instead, Spotify came in and it was a 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 a way that I can speed up my

5:28support? So maybe I have normal support, which is, you know, you get a response apply in 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 repackage 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 that's the fifth one. And then the last one, excuse me, is more of a mental exercise, which I

5:53call the 1 10x to 1/10. 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 1/10, if I if I had to fit it into 1/10 the price and I had to deliver more value

6:15than I am right now, how would I do it? And so there are two There are two creative questions from different ends of the the scale. So, if I had a $1,000 product, for example, if my thing was $10,000, 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 can 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

6:41currently is, what else would I include? What else would I build into this thing? Right? And so by thinking through 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 or liability. And I look at where my current products exist on this cube and think, could I go one to the left or one

7:12to the right on any of these six? So, I'll say them again from the top. We've got the ratio of Is it going to be one-on-one? Is it going to be small group? Is it going to be one to 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

7:33phone 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 our higher level, which is phone and zoom, right? The fourth is going to be how I want them to consume this. Do I want this to be a live experience or would this be a recorded experience? Do I want this to be written, audio, or video? How do I want them to consume information from me as a business? Fifth is how can I make

7:55this 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

8:11result 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 They changed and transformed the entire e-commerce space simply by saying, "We're going to get stuff to everyone to in 2 days." Right? And now 1 day. Now hours, right? And then finally, the creative process of 10x to 1/10. 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

8:34not? And then can I include those in my current offering cuz 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 1/10 the price, what would I jam pack into 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

8:53that I'm trying to keep down. Use this, think through it, and if you were if you're meeting with your team and thinking how can we 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

9:09being awesome. Catch you soon. Bye.