Modular Success: Building Blocks for Do-It-Yourselfers
Through trial and error I’ve been discovering the best way to provide affordable internet services to small business but still retain the quality needed to succeed. After several versions of ‘Per Project’ cost proposals and trying out ‘All Inclusive Retainer’ services I’ve come to find ‘Modular’ services are the perfect solution.
What is a Modular service? I define it as a simple building block, a simple service that when combined with other modular services create a greater whole. Like Lego’s each modular piece (website, landing page, ppc campaign, 3 month link campaign, 2hrs of social media research) can be taken individually or in sets. Sometimes one module can be broken down into several smaller modules. The key is making sure that each service provided in this manner is a benefit and useful to future services. A client may not have the budget to afford a new website, ppc campaign, email campaign and research all in one go, but most can afford one or two at a time. The creation of a modular series of services, is a balance of time spent and self-sustaining work (low maintenance website or a self updating blog). This business model has let me become one of the most adaptable and flexible web service providers in my field.
Applying this same idea to other businesses and organizations you can see where some are succeeding and others failing.
Dell provides businesses with ‘All-in-One’ packages, you pay an enormous sum for everything you could ever need and many things you don’t. You get the Computer, Monitor, Peripherals, Operating System (Windows), Audio software, Virus Protection, Browser, Movie Maker, Solitaire, Paint… the list goes on. They give it all to you for one single stunning price that guarantees you’ll not be buying anything from them again for a few years. There are payment plans if you wish to pay 30% more for your computer over a longer length of time… what a deal.
Now the savvy consumer does a little research and finds out he can build a computer and get his software for almost half the cost if he’s willing to buy it in pieces. Although there is a learning curve to overcome, putting your own computer together is not as difficult as it might seem. BUT WAIT! Along comes this great idea, a modular idea, to provide pre-built boxes with ONLY the features you want. Newegg, Tiger Direct… suddenly you’ve got choices again. You can buy your computer in pieces and have them slap it together for you and it’s STILL cheaper than buying from Dell. In fact you can pretty much get anything you want, any software, peripherals, monitor, computer case color and have it shipped right to your home. This is the face of the new business model, giving people the tools to do it themselves.
A subtle change has taken place as the younger generations use an increasing amount of ‘do-it-yourself’ tools throughout the service industry. Realtors and Travel Agents are hardest hit by this idea and you can ask them how Travelocity and Realtor.com are changing the face of their businesses. People are increasingly using the internet to find things out for themselves where in the past they would have hired a professional to look for them. The Stock Market is another example, with online trading you can go and be your own broker or even play with your friends money (if they’re the trusting sort). The Modular business practice takes advantage of the ‘do-it-yourselfers’ by offering them pre-packaged products they can snap together and reach their own goals. Do you want to go on vacation to Florida? Go to Expedia.com and they have packages, or individual travel plans you can purchase as well as bundling a rental car into the mix as needed. Separately, while you’re putting together your dream vacation you may see an ad for swimwear, which is also something you might need. Now how long do you think it’s going to take for complimentary businesses like that to figure out that if they have a common payment and shopping cart system, they can make a bundle? If Expedia and Ralf Lauren decided to share a Pay-Pal account then the customer could buy everything they need in one place, quickly, easily, and on their terms it would create an even stronger incentive for customers to shop in one place. Now imagine the entire internet was linked in such a way, no more hopping around from site to site to buy things here and there, no more paying for shipping 6 different times in 6 different places. Each company could create a Module of it’s services and products and link it into a National or Global payment system. The idea is a little ‘out there’, at the moment, and not very cost effective with current technology, but it’s coming.
So what can you do to move toward a more modular model? I use the three tenants of Time – Money – Quality to craft well balanced services that are easy to understand and use. You can have two but never all three tenants, and you have to ask yourself what’s the most important two for your type of business? For me it’s Quality and Money, keeping the cost down while providing a superior service. The means I have to sacrifice Time, the time it takes me to do the project as well as putting in some time before hand to setup a modular system. As an example a roofing contractor may want to consider creating a modular system for new roof installations. One module could be for an Estimate, the next for selecting and purchasing materials for your home, another for scheduling a time and implementation of the installation. Each module would cost a reasonable amount, the customer could then walk away or proceed in buying the rest of the modules to complete their new roofing installation at their own pace, in their own way. There are endless variations to the module system, each module should be easy to understand, a reasonable cost and simple to close the deal. Your customer should walk away from the experience of purchasing an ‘Estimate Module’ with a feeling of satisfaction and control so that they will come back and take the next step in completing the entire roofing project.
To close, the Modular business model allows a non-expert the ability to put together a package of equal if not greater value than an expert. If you’re a professional and your modules are professional then the whole experience will come off professional, no matter how unprofessional a customer can be. Make your modules fool proof so nobody is made to look the fool and you’ll profit from the new ‘do-it-yourself’ generation.
What is a Modular service? I define it as a simple building block, a simple service that when combined with other modular services create a greater whole. Like Lego’s each modular piece (website, landing page, ppc campaign, 3 month link campaign, 2hrs of social media research) can be taken individually or in sets. Sometimes one module can be broken down into several smaller modules. The key is making sure that each service provided in this manner is a benefit and useful to future services. A client may not have the budget to afford a new website, ppc campaign, email campaign and research all in one go, but most can afford one or two at a time. The creation of a modular series of services, is a balance of time spent and self-sustaining work (low maintenance website or a self updating blog). This business model has let me become one of the most adaptable and flexible web service providers in my field.
Applying this same idea to other businesses and organizations you can see where some are succeeding and others failing.
Dell provides businesses with ‘All-in-One’ packages, you pay an enormous sum for everything you could ever need and many things you don’t. You get the Computer, Monitor, Peripherals, Operating System (Windows), Audio software, Virus Protection, Browser, Movie Maker, Solitaire, Paint… the list goes on. They give it all to you for one single stunning price that guarantees you’ll not be buying anything from them again for a few years. There are payment plans if you wish to pay 30% more for your computer over a longer length of time… what a deal.
Now the savvy consumer does a little research and finds out he can build a computer and get his software for almost half the cost if he’s willing to buy it in pieces. Although there is a learning curve to overcome, putting your own computer together is not as difficult as it might seem. BUT WAIT! Along comes this great idea, a modular idea, to provide pre-built boxes with ONLY the features you want. Newegg, Tiger Direct… suddenly you’ve got choices again. You can buy your computer in pieces and have them slap it together for you and it’s STILL cheaper than buying from Dell. In fact you can pretty much get anything you want, any software, peripherals, monitor, computer case color and have it shipped right to your home. This is the face of the new business model, giving people the tools to do it themselves.
A subtle change has taken place as the younger generations use an increasing amount of ‘do-it-yourself’ tools throughout the service industry. Realtors and Travel Agents are hardest hit by this idea and you can ask them how Travelocity and Realtor.com are changing the face of their businesses. People are increasingly using the internet to find things out for themselves where in the past they would have hired a professional to look for them. The Stock Market is another example, with online trading you can go and be your own broker or even play with your friends money (if they’re the trusting sort). The Modular business practice takes advantage of the ‘do-it-yourselfers’ by offering them pre-packaged products they can snap together and reach their own goals. Do you want to go on vacation to Florida? Go to Expedia.com and they have packages, or individual travel plans you can purchase as well as bundling a rental car into the mix as needed. Separately, while you’re putting together your dream vacation you may see an ad for swimwear, which is also something you might need. Now how long do you think it’s going to take for complimentary businesses like that to figure out that if they have a common payment and shopping cart system, they can make a bundle? If Expedia and Ralf Lauren decided to share a Pay-Pal account then the customer could buy everything they need in one place, quickly, easily, and on their terms it would create an even stronger incentive for customers to shop in one place. Now imagine the entire internet was linked in such a way, no more hopping around from site to site to buy things here and there, no more paying for shipping 6 different times in 6 different places. Each company could create a Module of it’s services and products and link it into a National or Global payment system. The idea is a little ‘out there’, at the moment, and not very cost effective with current technology, but it’s coming.
So what can you do to move toward a more modular model? I use the three tenants of Time – Money – Quality to craft well balanced services that are easy to understand and use. You can have two but never all three tenants, and you have to ask yourself what’s the most important two for your type of business? For me it’s Quality and Money, keeping the cost down while providing a superior service. The means I have to sacrifice Time, the time it takes me to do the project as well as putting in some time before hand to setup a modular system. As an example a roofing contractor may want to consider creating a modular system for new roof installations. One module could be for an Estimate, the next for selecting and purchasing materials for your home, another for scheduling a time and implementation of the installation. Each module would cost a reasonable amount, the customer could then walk away or proceed in buying the rest of the modules to complete their new roofing installation at their own pace, in their own way. There are endless variations to the module system, each module should be easy to understand, a reasonable cost and simple to close the deal. Your customer should walk away from the experience of purchasing an ‘Estimate Module’ with a feeling of satisfaction and control so that they will come back and take the next step in completing the entire roofing project.
To close, the Modular business model allows a non-expert the ability to put together a package of equal if not greater value than an expert. If you’re a professional and your modules are professional then the whole experience will come off professional, no matter how unprofessional a customer can be. Make your modules fool proof so nobody is made to look the fool and you’ll profit from the new ‘do-it-yourself’ generation.
posted by Seigfried Designs | 8:14 AM
<< Home