Business services are activities that benefit companies without supplying them with physical products. They include consulting, property management, accounting, IT and marketing services. Some are offered in-house by a company’s departments, while others can be outsourced to third-party providers.
Unlike physical goods, which can be stored and consumed at different times, services are intangible and must be provided immediately after production. As a result, services must be tailored to each customer’s demands and needs and cannot be reproduced for future consumption. In addition, inconsistency in service delivery is common, as it can be influenced by human factors such as a slow response to a request for help or an employee who dithers while serving a customer at a fast-food counter.
Some examples of business services include cleaning, pest control and maintenance work. A cleaning company can keep office spaces clean and safe for employees, while a pest exterminator ensures the safety of equipment and inventory. Similarly, property managers can handle the upkeep of buildings and ensure they are compliant with government regulations. Accounting firms perform financial and tax services for businesses, while IT professionals can solve technical problems for employees.
To sustain a business, a service provider must be able to sell enough of its services to cover operating costs and pay debts. As a result, it must add a markup to its prices to generate profit. A pricing calculator helps businesses determine how much to charge for their services.