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

---

Google News Updated : Sat, 05 Jul 2008 18:55:12 GMT Barack Obama now wears his patriotism on his lapel - Los Angeles Times ABC News Barack Obama now wears his patriotism on his lapel Los Angeles Times - 12 hours ago Jae C. Hong / AP FLAG-WAVER: Sen. Barack Obama and daughter Sasha are onlookers at an Independence Day parade in Butte, Mont. Tired of having his patriotism questioned, the Democratic candidate has made Old Glory a major visual element of his campaign. In Montana, Obama Tries to Rally Support on Iraq New York Times In Montana on the Fourth, a Barometer of Obama's Chances Washington Post New York Daily News - Fort Worth Star Telegram - The Associated Press - NY1 all 700 news articles Publ.Date : Sat, 05 Jul 2008 06:25:05 GMT 2 fires still raging along Calif.'s Central Coast - The Associated Press The Associated Press 2 fires still raging along Calif.'s Central Coast The Associated Press - 54 minutes ago BIG SUR, Calif. (AP) - Cool, damp weather early Saturday helped crews gain ground on the huge wildfire that wiped out this coastal retreat's holiday tourist trade, allowing some personnel and gear to be shifted to a growing blaze farther south Nearly ... Video: Wind Keeps California Wildfires Raging AssociatedPress Gov. sending in troops to fight Cal wildfires Mercury-Register Lompoc Record - Santa Maria Times - The Santa Barbara Independent - New York Times all 1,471 news articles Publ.Date : Sat, 05 Jul 2008 18:01:11 GMT Obama and Clinton, Together Again - Washington Post New York Daily News Obama and Clinton, Together Again Washington Post - 1 hour ago By Jonathan Weisman BUTTE, Mont. -- Putting their money where their mouths are, Barack Obama and Hillary Rodham Clinton will appear together three times over two days next week, raising money for each other and further advancing the Democratic cause of ... Obama and Clinton Will Raise Funds Together Next Week in NYC ABC News Obama, Clinton to hold joint fundraisers in NY The Associated Press CNN Political Ticker - New York Times - CNN - Reuters all 565 news articles Publ.Date : Sat, 05 Jul 2008 17:26:50 GMT European Bonds Post Fourth Weekly Gain on Interest Rate Outlook - Bloomberg European Bonds Post Fourth Weekly Gain on Interest Rate Outlook Bloomberg - 11 hours ago By Anchalee Worrachate July 5 (Bloomberg) -- European two-year government notes rose for a fourth week, the longest winning streak since February, as traders pared bets policy makers will lift interest rates again this year after raising them two days ... Fighting Inflation, Europeans Raise Rate New York Times Bernanke's French Lesson Wall Street Journal International Herald Tribune - MarketWatch - Reuters - Forbes all 1,857 news articles Publ.Date : Sat, 05 Jul 2008 07:22:39 GMT Study suggests serotonin plays a role in SIDS - Los Angeles Times The Money Times Study suggests serotonin plays a role in SIDS Los Angeles Times - 11 hours ago Mice who overproduced the brain chemical showed symptoms similar to those of the infant syndrome before they died. By Wendy Hansen, Los Angeles Times Staff Writer Mice genetically engineered to overproduce the brain chemical serotonin died at an early ... SIDS Linked to Brain Chemical Dysfunction Washington Post Chance discovery points to crib death cause Reuters eFluxMedia - WebMD - BBC News - The Associated Press all 260 news articles Publ.Date : Sat, 05 Jul 2008 07:03:56 GMT African Union Weakened by Summit Inaction on Zimbabwe - Voice of America BBC News African Union Weakened by Summit Inaction on Zimbabwe Voice of America - Jul 4, 2008 By Peter Heinlein The African Union's reputation suffered a setback during the past week when its leaders faltered in the face of Robert Mugabe's blunt challenge to democratic norms in Zimbabwe. Q&A: Zimbabwe's disputed election guardian.co.uk Recognise me as Zimbabwe president or no talks: Mugabe AFP The Associated Press - Xinhua - Times Online - Reuters all 5,332 news articles Publ.Date : Fri, 04 Jul 2008 18:02:07 GMT Target: Barack Obama. Strategy: What Day Is It? - New York Times ABC News Target: Barack Obama. Strategy: What Day Is It? New York Times - 19 hours ago By PATRICK HEALY Despite a three-month head start, Senator John McCain has struggled to solidify lines of attack against Senator Barack Obama for the general election, Republican operatives say and some of his own advisers acknowledge, running into ... US candidates practise their U-turns BBC News Obama Predicts Political ‘Realignment,’ Tries to Put Montana in Play FOXNews Baltimore Sun - Austin American-Statesman - CounterPunch - National Review Online all 1,829 news articles Publ.Date : Fri, 04 Jul 2008 23:37:50 GMT Data Feed Content for Web Pages Amazon Associate Software

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

How Barter Can Help Your Business Online or Offline

How Barter Can Help Your BusinessBarter trade is a powerful... Read More

Embarrassed To Discuss Your Prices? Seven Common Reasons We Cant Talk About Them

Last week, a wonderfully-skilled electrician installed a new light fixture... Read More

How To Make An Inflexible Bureaucrat See You As A Person

Inflexible Bureaucrats Are Characterized by:1. Cares little about your happiness... Read More

So Whats Your Argument?

Arguments aren't always bad things. Sometimes They're used to convince... Read More

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... Read More

Can a Corporate Executive Really Use The Beautiful Mind; To guide decision making?

I would like to comment on the "A Beautiful Mind"... Read More

Barter: Its Not Just for Doctors Anymore

Time was, in the country, the local "doc" was as... Read More

Communicating Across Time Horizons

There was a time in my life when I sold... Read More

Barter and Its Benefits

What is Barter? Barter involves 2 parties. Each party wants... Read More

Where to FIND the BEST Employees --

Obviously, you might logically say, "that is good!" You would... Read More

Negotiating Tactics: How To Strike A Negotiable Opening Shot

There is no right or wrong to fire up your... Read More

Negotiations: The Art, Science, & Sport of Online Deals

Negotiations can seem as complex as physics, and in fact,... Read More

Ask for More - You May Get More

If you are involved with sales, how do you feel... Read More

Making the Deal: Women as Negotiators

Negotiating is no game. It is not for the weak... Read More

The Ultimate Truth in Persuasion

OK, so you want to improve your persuasion power right?Why?... Read More

Managing the Sales Negotiation Process

How many times have you heard:"You've got to drop your... Read More

Can a Service Be a Commodity

Well Enron dealt with this a little for instance an... Read More

Just Ask!

Ask and you shall receive & knock and it shall... Read More

How to Negotiate Effectively

You may be thinking, "Gary, I am a mom, housewife,... Read More

Negotiating Tactics: Don?t Let ?Good Guy ? Bad Guy? Control the Sales Negotiation

Counter one of the classic negotiating gambits by addressing it... Read More

Negotiate Like a P.R.O.

Whether you're negotiating a peace settlement in a war-torn country... Read More

Negotiating: Forcing vs Compromising

Forcing is a hard-nosed approach that makes heavy demands from... Read More

What Are The Four Types Of Negotiating Outcomes?

Negotiating outcomes are the types of results that can happen... Read More

Games are a Reflection of Behavior

You are standing on a small stage yelling, "What's the... Read More

Lets Make a Deal

Smart buyers will always ask for a better price. Unfortunately,... Read More