How Quality Can Dictate Price in the Service Industry

In the service industry, one business basically provides the same service as another business. Take the valet business for example, they all take your vehicle and move it to a central location until you return, when the valet retrieves your vehicle and brings it back for you. This is the basic process for all valet services. So what can set one company apart from another? Simply stated, it is quality. It is the extras that they put into the service that separates one company from their competition.

Every service industry must understand what they can do for their customer that is above and beyond the basic service. This becomes even more important when you want to sell your service not simply based on the service you offer but also by the extras. These extras give you the opportunity to sell your service at a higher price. These extras to the service truly cost nothing on a day to day basis but add value to your customer. Yes, there is the potential for extra expenses in training the staff to complete these added touches to the service but generally they are limited and more than pay for themselves over time. However, these extras cannot be something that is simply talked about, they must be present everyday in the service. Not only will your current customers be looking for this higher level of service, your service can and will act as a form of advertising your service. This is truly how you dictate your price in the service industry. Offer added value to the basic service, provide those added values and let potential customers see the service in action.

In order to get to a point where you have control over pricing there are a few things you need to do. First, understand what your basic service is. This may seem like a simple thing but it is essential in determining what your extras are and what you can sell as extras. Second, what does your competition offer in terms of added value to their services? This is true in a business whether it be service, manufacturing or retail, you must know your competition. Third, really spend time determining what value added aspects you can provide in order to differentiate your company. Keep in mind that with the ever changing world of technology, this may be every changing as well.

In the global market of today and with competition being at such high levels, you have to find ways to take your service business to a level that sets it apart. As stated in the beginning, anyone can offer the basics, it is the extras that will help your business thrive and grow.

Network Economy – A Brief Review of the Global Language Service Industry

November 9, 1989 was one of the most important events in modern history, launching an entirely new era of economic thought. This was the day when the separation of Berlin came to and end. It triggered a new era, in which economy could really grow global and legislation preventing global communication could be abolished. And in fact, these laws and rules were relaxed, but there is still a barrier, which has limited global communication since the dawn of civilization: multiple languages. It is not even easy to determine the number of languages spoken around the world (e.g. is the German spoken in Germany the same language as the German spoken in Switzerland, as this can hardly be understood by non-Swiss people?). There are several approaches to define a language, but based on the most commonly accepted parameters of the language service industry, the total number of languages used and/or spoken around the world is 6,913.

However, it is essential for the global economy to have participants, who are able to understand each other very precisely and without slightest misunderstandings. This can be attained in but two ways:

1. By establishing/electing a common language
2. By using language intermediaries

Both solutions have their benefits and downsides under certain circumstances. Establishing a common language usually constrained by national pride and cultural legacy. Thus, the use of certain languages is mandatory in several countries, while neglecting its use is considered a felony.

Therefore the global economy is turning towards the second solution, as this one seems to be easier to realize and pose less obstruction in the way of doing business than lobbying for the change of long-established and highly sensitive policies.

This huge demand led to the creation of intense supply, but based on a very special business model. Before, however, investigating deeper into the language industry itself, let’s review its special requirements and unique characteristics:

1. Industry members are seldom found in one location, as usually different languages are spoken in different countries, thus, native providers are rarely collocated.

2. Huge supply meets enormous and growing demand. The volume of the global language service industry is estimated to be somewhere around $12 billion and handling about 500 million pages of translation and localization every year. If you were to print this amount of paper and put each sheet on top of each other, you would get a tower 28.5 miles high. That is more than five times higher than Everest.

3. It is very difficult to establish objective and indisputable quality measures. Each product and service has to be evaluated on its own, as it is very difficult to determine objective pertinence measures.

These challenges are responded to by an industry based on strong, global networking principles. End clients usually get in touch with agencies or other types of network nodes. These play an arbitrary role between the demand and supply sides, as selecting, testing and managing the right professionals would usually exceed the capacities of end clients or would significantly decrease their efficiency. Network nodes play a similar role like agencies, but these do not order order translations in their own names to bill those to their own clients, but instead support the process of demand and supply finding each other, and provide valuable resources for evaluating providers by applying peer review solutions. Translators are mainly in touch with such agencies and nodes, but are rarely employed by these. Instead, they work in networks, thus creating a global and virtual enterprise. Agencies, nodes and translators are commonly referred to as ‘cloud’. Of course, like each other industry, the language service industry has its real global players as well, who are able to influence the entire market due to their size and relation system. Such global players are for example Lionbridge Technologies, SDL International – involved in both language service provision and technology development – but also Xerox, well known for its high quality office machines.

Currently the market is lead by Lionbridge’s 50 offices, $375 million revenue and about 4,000 people on its payroll.

The cloud is supported by auxiliary industries, mainly involved in developing specialized software products and services. E.g. there are several solutions for recycling the translators’ knowledge-base (called translation memory) or managing localization projects effectively, but possibilities are absolutely endless.

It is a solid fact that the translation industry would not be able to perform on such a high level without networking as it is currently a huge virtual network of individuals and companies. Current development points into the direction of strengthening. This is underlined by the appearance of new solutions enabling translators and other professionals to co-operate on various projects and reuse the knowledge created at other points of the network. A successful evolution of these solutions will be essential to the growth and development of this industry and the companies involved in it.

Cost Effective Business Services

A business services franchise is a good option for many who are willing to serve the corporate world. A business franchisee needs an investment in terms of fees, real estate, marketing, merchandise etc. there are both small business services as well as high cost businesses in the category. Here we discuss some prominent business services franchises.

Financial services: The financial services space is rapidly growing in India. It is one of the most significant business services in India. According to the latest Central Statistical Organisation (CSO) data, financial services, banking, insurance and real estate sectors have risen by 7.8 per cent in the third quarter of 2009-10. This displays the success of the financial service industry. With the over-all increase in the finance services seekers, finance service providers took to franchise route, thus creating a great scope for franchise opportunity.

Till a few years back, the franchising which was an unknown concept in this field has gained lot of momentum in the present times. Before discussing the factors responsible for this development, let us first get familiar with the term ‘Financial services franchisors’.

Financial services refer to services provided by the financial service companies. The finance service companies encompass a broad range of organisations that deal with money management. A few of these organisations include banks, insurance companies, consumer finance companies, stock brokerages, investment funds etc. These companies offer various services such as asset protection, investment and savings, retirement plans, customer-orientated service, besides offering personal loans, commercial loans, mortgage loans, and education loans for the aspiring students. Financial service providers are on the rise as franchising as a mode of expansion is being opted by this industry. Manish Shah, Associate Director- Business Strategy, Equity & Product Development, Motilal Oswal Securities Ltd shared, “The belief in entrepreneurship and the drive it brings to the business, made Motilal Oswal take the franchise route. Franchising brings more scalability to the business and the business becomes entrepreneur driven.”

Courier Services: Another category of business services is courier service. The companies basically work around transportation of goods from one place to another, delivery of documents, packages, and larger shipments of products. These provide services to companies and individuals who need rapid service, accountability, and tracking that regular mail does not accommodate. Courier services are more reliable and dependable as compared to ordinary postal services due to less time consumed and delivery guarantee. However, with the introduction of modern gadgets and faster modes of transportation this system has also progressed a lot. Moreover, franchising is also one of the main stimulants of its popularity and profitability.

Franchising in this sector has grown with more and more players taking the franchise model for reaching out to far flung areas in the vast nation. Courier service companies are required to deliever important mails and parcels to any part, whether city, town or village in the country. Therefore, franchising can be the best mode for guaranteed delivery of the items. According to DS Patel, Channel Head, DTDC, “Franchising is an essential and most effective way of expanding the network. Opening our own company owned courier offices is very expensive and time consuming. However a franchise outlet is economically beneficial to the company.” As informed by Praveen Govindraj, Assistant General Manager, First Flight Courier, “Franchising definitely helps in directly reaching to far-fling areas for delivering items due to our local partners in those areas.” He further added, “Franchising can be a win-win situation for both the franchisor and franchisees as both benefit from it. The local partner (franchisee) has a much better idea of a particular locality than the main company which is based out of Delhi or Mumbai. Delivering parcels to small towns and cities becomes difficult and also take a lot of time if it is done by the company in metropolitan areas. At such times the local franchisee can be of great help.” This can be the major reason for courier companies to opt for the franchise route. Moreover, having local partners all over the nation, who deliver all items on time, also increases the credibility and profit making of the parent company.

The typical feature of the courier service franchise includes doorstep booking, customer convenience and security of each and every consignment that has been entrusted to it. Jaguar Couriers Franchise, Blazeflash Couriers, etc are some of the franchising companies under this category.

Cartridge refilling: Cartridge refilling forms another business service category. In the modern age of I.T, there is a constantly growing need of cartridgere-fills. Foraying in the cartridge refill industry through franchise route is a promising venture. A cartridge refill franchise offers to its user’s quality refills at a fractional cost. Current industry trends and future projections suggest that printer cartridges demand will continue to multiply at a very fast pace as computers and low cost printers swamp the market. Cartridge World, Cartridge CafĂ©, Cartridge Xpress are some of the good low-cost franchise options.

Challenges

Every business has attached to it certain set of challenges. Though the basic challenges remain the same across the board for all business service franchises, their relevance with each sector differs.
Before opting for any of the above options, clear all your doubts. Apart from your initial investment, take into account the ongoing costs that must be paid to your franchisor, including franchise royalties, marketing fees and other required purchases. After you are convinced go ahead and make your mark in the franchising world!

How to Write Articles For the Service Industry

If you go online and read some of the online content in the business sector you will see tens of thousands of articles about every aspect of business. Still, you will see a disproportionate number of articles on the service industry. This seems odd considering that more people are employed in the service industry than any other sector of our economy.

It’s true, go to the Department of Commerce, and see for yourself. There is also information at the Small Business Administration on this. It’s a known fact that our service sector employs more people in the service companies are both large and small.

Some are doing billions of dollars a year, single corporations, but for the most part they are small and medium-size businesses. And they do just about everything in our society; they fix our cars, do our home improvements, wash our cars, and take care of our elderly. These companies don’t sell a product, they are service companies; and whereas, they might sell a few products now and again their business primarily in servicing America.

Over the last three years, I’ve written over 50 articles specifically geared towards the service industry, what I’ve found is these articles are very well received, and the readers of these articles often send me feedback thanking me for the information. For those that write business articles, I sometimes don’t understand why they skipped this sector, as if it doesn’t matter. It does matter, and there is a thirst for information in the service industry.

Companies want to know how to stay more efficient, schedule their work, train their employees, recruit the best workers, manage their businesses, market their companies, and a whole slew of other subtopics. You literally could write all your online articles on the service industry alone and never run out of things to write about. I hope you will please consider this.