Business Services

Business services are a type of business that provides non-financial products or services to businesses. This industry covers many different types of business operations, from advertising and marketing to staffing and shipping.

Business versus product

A business can be defined as an activity undertaken to make profits. It can produce or sell a product to make profit, but it can also provide a service to make money.

Differences between Business and Product

Most modern business theorists look at a continuum with pure service on one terminal point and pure commodity good on the other. Most products fall between the two.

Intangibility of services: Unlike physical goods, services do not have any form that customers can touch and feel. They cannot be produced and stored for future consumption like goods can be.

Inconsistency of services: Unlike physical products, services have to be performed exclusively each time and the demand and expectations for the service vary from customer to customer.

Importance of feedback: In a service environment, customers play an important role in the quality of service delivery. For example, a fast-food patron who dithers at a counter makes the service less efficient for everyone behind him.

Price: Most services are priced based on the value that they provide to their customers. This value is determined by what the customer thinks the service is worth and to some extent by competition.

A business consultant is a neutral party that helps companies assess their current status and determine where they can improve. During this evaluation phase, the consultant will identify any areas that need attention and outline strategies to solve those issues. The consulting firm will then help implement those recommendations to improve efficiency and increase revenue.