List Categories | List All Articles | List Articles By Title
Can a Service Be a Commodity
Well Enron dealt with this a little for instance an intangible such as the available bandwidth in fiber optic lines. So what is a commodity in a service business? Well, a commodity could be considered are capacity to wash cars for a mobile car wash business like the company I own, the additionally created capacity coming from increased efficiency in studying production rates. In a service business, increased efficiencies will allow more time to do more work and thus make more profits from additional work.
Our biggest customers sign contracts with us to clean cars, concrete, fleets, etc. by signing the contracts with us in advance, what they are able to do is the guarantee that we will do their job first, no matter how busy we get or no matter how much in demand we are to other potential clients. Service Contracts could in fact be commoditized too you see, just like Enron had decided it could do with excess bandwidth in fiber optic lines or timber futures for new home builders. The excess capacity for washing cars could be the capacity of our units to wash cars in advance directly to the general public after those important pre-scheduled and contracted fleets produce. By using prepaid carwash cards we can sell carwashes in advance to our customers at a predetermined price. We guarantee we will deliver those carwashes even enough the relative price of carwashes go up due to the demand that occurs both from seasonality, changing demographics and that change in more sunnier weather (which makes our phone ring off the hook).
Our customers are able to lock in the price of a carwash, or many carwashes, or a contract for our capacity to wash cars. Like Starbucks we are smart, we are constantly improving our capacity to wash more cars, while we eliminate other market players by bundling services, providing better services, afford better equipment, better marketing dollars or lower prices to the customer who signs up in advance. With these contracts in hand any company can use those against bank loans for influx of capital for expansion, those who sell their products and yes, services too will be able to better judge their future obligations and needs. Those who buy the contracts can also have their costs known and locked in. Those who trade on the float and provide a system for doing this also tend to assist the system by risking their monies on their perceived future possibilities of price fluctuations in that market.
So in fact a service, which becomes a commodity stabilizes prices, promotes efficiency and allows customers to lock in guaranteed deliver and price and that is a good thing, think about it Enron did.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
What Are The Four Types Of Negotiating Outcomes?
Negotiating outcomes are the types of results that can happen at the end of a negotiation. All negotiations end up with one out of four possible outcomes: one party wins and the other loses, both parties lose, they get stuck in a stalemate, or both end up winning.
Dont Be Afraid Of Silence
In any conversation with two or more people, there is a tendency to want to talk all the time to fill any awkward silences or gaps that appear in a conversation.However, if you think of the conversations that you have with your closest friends or family, you will notice that there isn't the same need to fill these gaps, as silences between you are comfortable.
Negotiating: Forcing vs Compromising
Forcing is a hard-nosed approach that makes heavy demands from the outset. Emotions are displayed frequently, few concessions are made, and the bottom line may be concealed.
Lets Make a Deal
Smart buyers will always ask for a better price. Unfortunately, too many sales people and business owners automatically think that reducing their price is the most effective way to respond to this request.
Writing an RFP (Request for Proposal)
A while back, a potential client provided me with some general details of the writing work he wanted me to do for his company. Then he asked me to send him a proposal.
Suppliers as Your Partners in Cost Reduction
This article is one of the many articles still to come in which I will discuss very basic yet proven techniques that you could use immediately in your encounters with your suppliers.Oh but wait, to find any value in this article, you must be a firm believer that Purchasing strategies have evolved from just 1) focusing on price and 2) focusing on quality, reliability, responsiveness and total cost to a much broader focus of building supplier relationships.
Negotiations: The Art, Science, & Sport of Online Deals
Negotiations can seem as complex as physics, and in fact, people go to college to study the science of negotiating just as they would the laws of nature. At the same time, negotiation is like an ancient art form, some sort of Zen mental jujitsu.
Negotiation: A Compromising Position
Negotiating is a hot topic these days for a good reason. It is difficult to imagine a more vital managerial skill than the skill of negotiating.
How to Change Somebody's Mind
Believe me, it's not easy! And sometimes, it doesn't work at all.But while researching my book on how to produce more memorable writing, I stumbled upon these "mind changing" ideas from multiple sources.
Games are a Reflection of Behavior
You are standing on a small stage yelling, "What's the name of the game?!""Win as much as you can!!!" comes roaring back."Who's responsible for your score?!""I am!!"The audience is composed of ninety men, all prisoners in a federal maximum security prison.
The Six Rs for Changing MInds and Overcoming Resistance
This article borrows from Howard Gardner's book, "Changing Minds" (2004). In order to get people in conflict to cooperate or collaborate sufficiently to settle or resolve their differences, and perhaps achieve reconciliation, it is necessary that they change their minds.
Business: Keys To Negotiating Well
Whether it's buying a car, asking for a pay rise, saying 'no' to a friend or renting an apartment - at some stage in our lives we all are going to need to know how to negotiate. Yet, so few of us know the basic skills before embarking on life changing purchases or decisions! These 8 keys will assist you negotiate well.
Ask and you shall receive & knock and it shall be opened &send an email and see what happens.As a student of personal finance you are probably familiar with the advice to negotiate with your credit card companies to get a lower interest rate.
Do You Want a Paycheck or a Passion? 10 Qualities Managers are Looking for in Hiring You
Based upon my research of over 300 managers in the last two years, I have found what qualities are most important to hiring managers.You will be in a more competitive advantage if you do a self-assessment to determine if you possess these qualities.
National and Cultural Negotiation Style
Cultural and national negotiation styles reflect communication behaviors and the priorities of that culture. Priorities such as trust, teamwork, non-confrontational situations, and openness are all along a sliding scale with each culture.
Negotiating Technology Contracts
Have you ever tried to negotiate a deal for software, computer equipment, or consulting services with a technology company? The task can be daunting. Unfortunately, the sales forces of most IT companies are armed to the hilt with techniques to get the best deal for them, and not necessarily the best deal for you.
The Ultimate Truth in Persuasion
OK, so you want to improve your persuasion power right?Why? What's your intention?As you know your intent directs the flow of energy in your interactions with others. So doesn't it just make sense to have in mind a really clear and strong intent before you engage in your powerful persuasion mission.
Barter: Its Not Just for Doctors Anymore
Time was, in the country, the local "doc" was as likely to get paid with a couple of chickens as a couple of dollars. Doctors these days won't stand for that, of course, but while some people have moved completely away from barter and stayed there, others have embraced it wholeheartedly.
30 Tips for Keeping Meeting Expenses to a Minimum
Money makes the world go 'round. And when it comes to meeting planning, money can probably get you whatever you want.
Neogtiation: How to be Right Without Making Other People Wrong
What exactly are we trying to accomplish by proving to others that we're right? We might win the argument but ultimately lose the relationship. Perhaps a better, deeper-rooted question is this: Why do we lose sight of success, of our big objective, when we feel challenged or intimidated?When I prepare to negotiate, provide a service or turn my employees' talent into performance, I know deep down that if I make people feel valuable they will see my input as having value.
home | site map
All articles are copyright to their owners.
Note: this website lists articles, We do not Write Articles !