Business services are a wide range of activities that benefit companies without supplying tangible goods. Businesses rely on these services for marketing, production, safety, cost and convenience purposes–especially for larger firms.
There are many different types of business services that are essential to a company’s success and growth. These services help companies accomplish their goals, improve the relationship between manufacturers and customers, and more.
They can also be used to enhance the work-life of employees and promote wellness. Some of the most common services include:
Insurance Service
Business organizations often need to protect their assets against financial liabilities, as well as reduce their overall obligations. For this reason, they rely on insurance services to provide coverage for their employees and their properties.
Real Estate Service
Businesses require workspace for their operations, and many organizations rent these spaces instead of owning them. For this reason, real estate agents and companies help these organizations find a suitable space, negotiate rental agreements and deal with maintenance issues.
Maintenance Services
A lot of business companies need professional maintenance services to keep their properties in good condition and avoid code violations. These professionals ensure that a business’s property is functioning as it should, and they provide repair services when needed.
Pest Control
Aside from preventing code violations, pest extermination services are necessary for a company’s health and safety. These professionals ensure that pests are treated safely and quickly.
Tech Support
Businesses rely on tech support professionals to troubleshoot computer and network problems, allowing employees to remain productive. They may also hire these professionals to update software and anti-virus programs.
They can be hired on a contract basis, and they often offer their services at a reasonable price.
These services are often referred to as shared services, and they’re an efficient way to consolidate all of a company’s support functions in one location, enabling greater productivity and efficiency.
Shared services are also a valuable tool during mergers and acquisitions, as they can streamline the process of integrating new organizations to achieve synergies.
Pricing and Value
As a general rule, service businesses don’t charge a base fee for their services, but instead they charge based on the value the customer perceives them to have. This means that the price of a service is determined by the customer and to some degree by competition.
The cost of a service is usually the sum of direct and indirect costs, with direct labor being the most significant. In addition, service companies have to account for overhead and other fixed expenses such as property taxes and other business costs.
Service-oriented businesses face a distinct set of management challenges, in part because they’re more abstract than product-oriented ones. Managers need to shift their perspective from what they want their product or service to look like (what they call “product design”) to the experience that customers are seeking.
