Selling service is tougher than selling goods

Lalit Bhojwani By Lalit Bhojwani, 6th Apr 2012 | Follow this author | RSS Feed
Posted in Wikinut>Business>Sales & Marketing

Selling services is always tougher than selling goods. Do you know why?

Selling service is tougher than selling goods

Service being intangible, marketer needs to put on more efforts as he cannot show the things that he is marketing. Being intangible, services cannot be touched or seen.
Because of following characteristics selling intangibles services are tougher than selling goods:
1. Because of intangible character of services marketer faces these difficulties – sampling difficult, difficult to judge in advance, not possible to have patent or copyright. Hence intangibles are relatively difficult to promote. For example, in contrast to soap where you can immediately check its benefits, there is no way to do so in the case of teachers because teaching is an intangible service.
2. Because of inseparability services require presence of performer, direct sale, and also face difficulties because of limited scale of operations and geographically limited market. For example, a plumber and a beautician has to be physically present to provide the services.
3. Heterogeneity characteristics of services makes standardization very difficult task to achieve. For example, the doctor who gave you his complete attention in his last visit may behave a little different in the next time.
4. Services cannot be stored and are perishable. Apart from this most services may face fluctuating demand. For example, there is a peak demand time for busses in morning and evening.
5. In the case of services, customers have access to but not ownership of them.
Thus because of above characteristics of services the marketer must try to convince the customer that the services, they are providing are `the best`.

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Selling, Service, Services

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Comments

author avatar Lady Aiyanna
6th Apr 2012 (#)

I know that I sell services to various companies around and some of them internationally too. What you build is a name and that is the goodwill that you do take into consideration. It is something that is estimated no doubt but can be put under the Assets and Liabilities sheet on Accounting thereby creating an air of tangibility to it.

With regard to performance degradation its more the work ethics to be blamed rather than the service that is offered and that is when it become a HR issue wherein they have to check the level of motivation of the employee in order to check why is there a performance degradation. Sometimes it could be self orchestrated or in many of the cases externally orchestrated due to negative valuation of your services that have been rendered. This is usually seen in the form of references that are given about the work that you so. Failure to adhere to the references that have been given not only speaks badly about he person but also of the one who gave the reference and the company that they work for.
Services are only perishable if you haven't been using the skill, if you continue using the skill, you make it the second nature of who you really are and attain perfection in performing the same thereby setting a benchmark of your quality levels of performance.
Services are rendered and not owned true but it is contractually obligated to performance when the person understakes to perform the job based on the the conditions stipulated when undertaking the task. Failure to adhere to that can be challenged in the court of law under the law of contracts where the proof lies in the way the whole task has been performed through various factors like documentation, the performance levels, feedback etc.
Intellectual property does belong to the person who is rendering the job and that is the service that is paid for when you are performing the task.
It is not always you can document your people handling skills but you can always show the world how well it is done through feedback around.
For all other things, there is something call indemnity insurance that covers the liability of the service that hasnot been rendered or performed based on satisfactory requirement and supported with adequate proof. No proof means that the matter is hearsay and that is when troubles start to brew.

This is based on the fact that I sell services and am contractually obligated to give a state of the art performance that would do the brand name that I work with proud and worthy of myriad of recommendations from around the world.

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