What are some of the main differences between products and services? And when are these relevant?
Tangibility versus Intangibility
Products are tangible. You can buy pork as a tangible product. You buy it, you ship it and sell it. In the same way as you buy stamps, cigarettes and cars.
Financial service companies however, make it possible to exchange pork bellies Futures, on the Chicago Mercantile Exchange (CME). A future is (not the most simple example of) a service with which you can hedge your risk. In this last case, most of the people trading on the CME will never see or smell the pork bellies.
The ownership between products and services is different. A stock could be called a financial product that you own. You can place a stock order which might result in a transaction later on. Your bank services a depot fee for saving you a lot of work. You cannot own a service.
Where the product is much more standardized, the service is tailor-made. Companies differentiate in offering products and services, but the variations between similar products of different producers are less prominent than the variations between services.
You can count products in the same way as you can count your money (or have your bank service you this information). A service is not countable, but is “leveled;” better than the best service is not possible. There is a limit in what a service can offer.
A product is produced by a manufacturing process. A service is offered by the utility element of companies; you subscribe to a service in the same way as you subscribe to your gas and electricity supplier.
And this brings us to the essential of these differences; changing from one (product approach) to the other (service offering) is very complex, because of the last mentioned differences. Not only the process is different but the style change you need to support this change… Good Luck.
© 2006 Hans Bool
Insurance auto auctions are a great way to get a great deal on salvaged cars and trucks. In fact, the company Insurance Auto Auctions is one of the most commonly used specialists in this area with auto auction locations throughout the United States. The company has been around since the early 1990s providing a variety of auto auction services for car owners, car buyers, and car sellers. If you are looking for a good way to get a car at a cheaper rate, insurance salvage deals are a great option!
Salvage vehicle auctions involve several elements – including a facilitation between buyer and seller as arranged by the Insurance Auto Auctions company. Although IAA is one of the more well known companies in this part of the automotive industry, many other companies exist with the same auto salvage specialty.
Automotive salvage occurs when an insurer considers a vehicle to be a “total loss” in insurance terminology. Essentially, this means that the vehicle is of no use to the insurance provider and the insurance carrier. When this happens, the salvaged vehicle can be sold or parted out. Many major insurance companies work with Insurance Auto Auctions, Inc. and similar companies. You will not be surprised to learn that Farmer’s Insurance, and even GEICO are just some of the names on the IAA list of regular clients.
Percentage salvage auction sales are more common these days as such companies work hard to get a piece of the action! When a salvaged car is sold at rock-bottom prices, the insurance agency provider is very interested in obtaining rights to at least a small percentage of the insurance auto auction. Since this practice has become more common in recent years, more and more insurance agents and their representatives are seeking percentage shares with companies like Insurance Auto Auctions.
Characteristics of a Good Online Auction Site
o Very clear defined policies and procedures must be enacted upon when and if any wrong transaction occurs.
o Rating of buyers and sellers facilitate the identification of sellers who do not exist to the end of bargain.
o Fees and commissions must be mentioned on the site. Most of the sites do not charge any fees from bidders but sellers often have to pay small fees for listing the items and commission on selling any item. So the bidders must compare online auction sites for the fees and commission rates to get an idea of the current rates.
o A good online auction site must have escrow services option such as PayPal. These services make the selling and buying more quick by preventing buyers and sellers from becoming intermediary. The buyer can directly send the small fees and payment to the escrew service, after receiving funds escrew gives instruction to sellers to ship the goods. When buyer receives the goods in acceptable condition, funds are transferred to seller via escrew service.
o A good online auction site must have the international payment and shipping option. Commercial sites support international sales.
Advantages of Online Auction Sites
Online auction sites offer several advantages:
o Online auction sites do not stop businesses to carry on sales of product through traditional sales method.
o An online auction site also reduces the distribution cost of a product. It can be stored at one place till it is ready for shipping. It will also reduce the packaging cost of items for distribution to intermediaries such as retail stores. It will also protect goods from damages and keep them safe.
o Online auction also helps small businesses to sell their seasonal, discontinued or damaged goods often with profits and eliminate the inventory expense to store them.
o Online auction sites open the door of international markets for small businesses and help to expand global market. That is nearly impossible to achieve via normal marketing channels.
o Online auction sites also help new businesses that offer new products and it becomes easy to set a market price based on supply and demand.
o These sites also help to find out what customers are willing to pay without doing time-consuming expensive market research.
Disadvantages of Online Auctions
Online auctions do not provide buyers with an option of personally viewing and evaluating items before purchasing. This may lead to the possibility of fraud.
Another major drawback is that it is also not possible for every business to take part in online auction. Companies have to host their own auction websites and for this purpose they have to hire trained technical staff.