To build a more profitable services portfolio, distributors must "have a very value- and financially driven conversation (with their customers) when it comes to services," says Guy Blissett, author of Facing the Forces of Change: Decisive Actions for an Uncertain Economy, in A ‘Value-Based’ Approach to Services.

A transparent conversation with a customer about how much it will cost to deliver a service and how much it will save them can increase the services they use, Blissett says. Demonstrating that you understand their business process also can lead to increased credibility, which is beneficial when discussing pricing. He says it is important to know your limits, "have confidence in your own analysis of how much it will cost you" and be prepared to walk away from unprofitable business.

Increasing your services portfolio helps retain customers. "Once you get your services embedded in your customer’s business that’s integral to what they do on a day-to-day basis," it deepens the relationship and makes it harder for them to switch to a competitor, Blissett says

Read more about customer conversations in A ‘Value-Based’ Approach to Services.