Getting to Know Service Oriented Businesses
The service oriented business is a type of business which functions and relies heavily on the aspect of service. The service oriented business can be easy but at the same time very challenging depending on which type of service business you venture in to. Just remember that service is the key term when venturing into the said business.
The Concept and Mechanics
Service oriented businesses focus on the field of service. This means that the product the proprietor is selling is actually a service and not something abstract or a tangible item. The service market involves people doing specific jobs and the aspect of selling isn’t necessarily heavily implied. That’s because the thing you are selling is an act and not something that the person can own. Services can be offered at a certain time limit or a onetime deal. One example would be repairing utilities. You need to hire let’s say a plumber to fix any type of water irrigation problems you might have. Depending on the situation and status of the problem, will vary the amount of the service offered. It’s similar to how you go to a barber shop where sometimes the prices are fixed or sometimes the price for a shave is different from a haircut.
The Financial Flow
Unlike other business types, service oriented business focus less on the selling and especially the buying aspect. Since they rely mainly on the abilities on their personnel, then there’s no need for them to acquire any merchandises. The things they can purchase are items that can better enhance the service aspect. One example would be buying high pressurized tools for car washing business instead of using the ordinary garden hose. Selling is the least concern of the service oriented businesses since catering their services is their primary concern. In short, service oriented business have very little expense disbursements in terms of merchandising aspects. Their expenses can be limited to the simple utility, rent and miscellaneous expenses.
The service oriented business is known to be flexible. If you miss a certain appointment with a service staff, you can easily reschedule it but some offer a penalty fee of course. There are also service oriented businesses that are favored with several legal applications. The restaurant business in a lot of countries has the certain percentage service charge law. This means that customers are obliged to pay a certain service charge for the service offered. Then of course, service oriented businesses are usually expensive thus a high earning endeavor.
Service oriented business may be high paying but sometimes they’re not too hot. The fact that services are a bit expensive, people will tend to do it themselves. Medical services are a good example as people just tend to self medicate rather than see a doctor for expensive diagnosis. There are also other services like household repairs that can easily be done by the owners. In short service oriented businesses can’t be as profitable for the most part.
The key term to service oriented businesses is the word service. The product that the proprietor is selling is the act of service through its personnel. Just keep in mind that a service operated business requires very little investment but the returns may not be as constant.