Service Sales Vs Product Sales
Sales is a term used for the activities that lead to the giving of goods or services. The main responsibility is to manage relationships with potential clients with leading in sales and increase in profits. Marketers use market research and analysis to explore the interests of customers. Marketing includes running campaigns to attract people to the business’ brand, product and the service.
Comparison between Service and Product Sales Life
The biggest difference between selling a product and selling a service is that the buyers can see, touch and feel products, while services are quite intangible. They both have separate marketing plans for each segment. The measures should focus on exploring ideal target markets as well as increasing the sales by uncovering competitive advantages to make the company profitable in every possible aspect. Here, are some points of comparison which are as follows:
Cost of the Business model
Services business is more reliable than a product business provided the services are distilled with hard work and right decisions. Cost of setting up business of product-baseddevelopment is a costly affair as it will need factory, assembly line, quality engineers and delivery of goods which will indirectly make the product expensive. On the service side, market research and market testing are essentially required. The time of delivery is short and cost effective. Service businesses are more flexible in setting their prices, with the rate typically based on the project. While the product companies must develop pricing that’s competitive with other companies selling the same merchandise in the market.
The population of the world is fixed. In product-based company the product has life of about 10 years as every sector will be covered in 10 years span. However, in the service it’s a more sustainable business because it is not product dependent or on product portfolio, therefore, the service-based company can have different products.
Profitable structure and advancement
For product development, the cost is fixed after adding delivery and maintenance charges. The margin of profit is less. While in product-based industry, by optimising the processes and training the available resources, the margins of profits can be improved with the quality service.
Diversity in Product Type
The portfolio diversification is availability of wide variety of products. Like mobile companies, they come up with new model in every 6 months. So, the market of product-based industry is quite diversified and model details are distributed among employees. While in services, the portfolio is limited to the expertise. A single model is present and there is hardly any diversification in the business.
It is easy to copy in service-based company while product replication is difficult as product design patent is unique and verified. The service model with a design patent when get replicated nothing can be done.
Product Selling and its Advantages
The customers’ issues can be solved by unified solution provided by products. The identical versions of product are given to numerous customers. The advanced or improved versions of products with evaluated features can be put on sale to different prospect. While marketing a product, the focus is more on selling rather than customization which makes the business quite profitable.