Package Optimizer for productized Agencies

Frequently Asked Questions

What does the Package Optimizer do?

The Package Optimizer helps agencies determine the optimal mix of service packages based on available team capacity. It calculates how many clients you should have for each package type to maximize profit while ensuring business diversity.

How does the calculator determine the optimal mix?

The calculator uses a two-phase algorithm:

1. Diversity Phase : Allocates a minimum of 3 clients per package (when possible) to ensure business diversity
2. Optimization Phase : Allocates remaining capacity based on profit-per-hour with a diminishing returns model

These calculations are based on important KPIs for agency resource allocation.

What inputs do I need to provide?

You'll need to enter:

• Your total available team hours per month
• Details for each service package including:
  • Package price
  • Hours required per client
  • Profit margin

What are the key metrics in the results?

• Optimal number of clients for each package
• Total hours used vs. available
• Resource utilization percentage
• Projected monthly revenue and profit
• Overall profit per hour

Why doesn't it just recommend my most profitable package for all clients?

The calculator uses a diminishing returns model (each additional client = 90% value of previous) to prevent impractical all-or-nothing recommendations. This reflects real-world conditions where putting all resources into one service creates business risks. It's similar to how tiered pricing models help balance value across different service levels.

How does the diversity allocation work?

The calculator first tries to assign a minimum of 3 clients to each package type (when capacity allows) before optimizing the remaining hours. This ensures you maintain client diversification rather than overspecializing.

How does the calculator define "profit-per-hour"?

Profit-per-hour is calculated as: (Price × Margin%) ÷ Hours required. This metric helps determine which packages deliver the most profit for your team's time investment, which is a core principle of value-based pricing approaches.

What is the "balance factor" in the calculations?

The balance factor (0.9^current allocation) reduces the effective profit value of each additional client for a package type. This prevents the calculator from allocating all resources to a single package type, similar to how competitive pricing strategies require balancing multiple factors.

How often should I re-run this calculation?

It's best to recalculate your optimal mix:

• When adding new package types
• When changing package pricing or delivery hours
• When team capacity changes
• Quarterly as a regular business review of agency KPIs

Can I use this for multiple teams?

Yes, you can run separate calculations for different service teams if they work independently. For teams that share resources, use the combined team capacity.

Does this replace capacity planning?

No. The Package Optimizer should be used alongside your capacity planning. It helps determine your ideal client mix, while capacity planning helps you manage delivery resources over time as part of scaling your agency .

How does this help with business decisions?

The calculator helps you:

• Identify which packages to prioritize in sales
• Determine if certain packages should be redesigned for better profitability
• Balance short-term profit with improving client retention
• Make data-driven decisions about your service portfolio and managing agency clients