Providing services is a way of working with something you are an expert in and offering it to other people or companies, but without selling products.
That is, you will offer your accounting, technology, marketing, etc. services. There are many activities that are classified as providing services.
It helps many individuals and companies to work independently and organize their own schedules, as well as build a diverse client portfolio.
If you have a company that provides services, are an individual service provider or want to become one, this article is for you. We will explain everything about the topic and show you some tips on how to manage your business.
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What is service delivery?
The provision of services occurs when the consumer pays for work. Thus, the good produced is consumed simultaneously.
In other words, it is the name of any activity that is carried out to satisfy a specific market demand, without involving a basic product, such as the provision of services in the areas of beauty, health and transportation, for example.
Sell products x Provide services
Selling products and providing services are two completely different things. To make things clearer, we have separated the main differences between them. Check out:
Tangibility
Products are tangible goods that can be touched, seen and felt. While services are intangible, they are not physical materials.
For example, when you buy a book, you receive a physical object that you can flip through, smell, and keep. When you sign up for an online course, you guarantee yourself a learning experience.
The same is true for the sale of a vehicle, which is very vietnam whatsapp data tangible and configured as a product, and for trips made through mobility applications, which are intangible, since drivers are providing a service to the consumer.
Is it clearer? We hope so!
Perishable
Products can deteriorate, spoil and lose value over time. Whereas services are everlasting and do not wear out or lose value over time.
That is to say, services are not linked to durability, like products, but to the positive or negative experience that the consumer will have when contracting them.
For example, when you buy fruit, it has an expiration date and can rot if not consumed. However, when you hire the services of an electrician, the repairs carried out by him do not have a deadline for being used.
Inseparability
A product is separable when it can be produced in one place and consumed in another. A service is inseparable when it is produced and consumed at the same time and in the same place.
For example, when someone buys a car, it is manufactured in a factory and delivered to a dealership. But when you get a haircut, it is done in a salon and you leave with the results.
Heterogeneity
A product is homogeneous and has the same quality standard and characteristics for all customers. A service is heterogeneous because it varies according to the customer, the supplier and the time.
For example, when you buy a bottle of mineral water, it has the same taste and composition for all consumers. When you book a relaxing massage, it can be more or less satisfying depending on your personal taste, the skill of the masseuse and your mood.
Property
When a buyer purchases a product, the item becomes his or her possession. This is not the case with service.
Let's imagine that Paula bought an online marketing course, she will be able to acquire more knowledge with the course and learn all the teachings through it. However, it is not yours, but the property of the person who created the course and made the sale.
Thus, a product is transferable when it can be sold to another person. A service is non-transferable, because it can only be enjoyed by the person who has contracted it.