HomeUncategorizedServices Company: Characteristics, Examples, and Types of Transactions

Services Company: Characteristics, Examples, and Types of Transactions

Everyone must have heard of the services company. Because the activities of this type of company are often found in the daily activities of the community. The most important element in a service company is the service system provided to consumers. Because with good service, consumers will feel satisfied so that they will use the services of the company again. Therefore, a long-term relationship will be created that benefits both parties. Some examples of other businesses or companies engaged in services are photocopying, motorcycle taxi services, laundry, and many more. Nowadays technology is increasingly advanced, as well as in running a service business. You can use a professional service ERP system to make it easier for you to run a service business automatically.

services company

Definition of Services Company

services company
Source: freepik.com

A marketing expert named Christian Grönroos argues that service companies are businesses whose activities consist of a series of intangible activities between service employees and consumers. In general, a service company is a business that has production activities whose products are intangible or services and aims to meet consumer needs and earn profits. In other words, this business produces services aimed at meeting consumer needs and profiting from them.

There are so many examples of this business in everyday life, one of which is public transportation or motorcycle taxi services. With this company, people are helped to travel anywhere from one place to another. With advanced technology, these services can also be ordered with an application through an online system. Only by a smartphone, consumers can order motorcycle taxi services and take them to their destination. Even now, you can also deliver goods or order food through the app.

Also read: What is Affiliate Business? |Definition, Advantages, and Implementation Tips

Services Company Characteristics

 Offer services

The first characteristic is offering services because usually service companies do not make products. Instead, they offer useful services and assist consumers in carrying out their daily activities.

Intangible product (no physical product)

The next characteristic, the company does not have a physical product. They offer intangible services or products that are beneficial to consumers.

No ownership

This is also one of the characteristics of a service company. Consumers can only use the facilities, access them, then make payments and have no ownership in the production and sale of services.

The results of service products are not the same

Having a product circulating in the community will lead to the same form and results. However, unlike other businesses, this business has a service that will be received by consumers who are different from other consumers.

Also read: Tips for Developing Your Business with the Help of a Content Creator

Example of a Services Company

The following are some examples of service companies:

  1. Medical and health

This service is one of the important means to maintain the health of the people who offer health services. These services can be in the form of treatment, consultation, and other health facilities. In this service, it takes the profession of someone who has already passed formal education in the health sector such as doctors, nurses, midwives, and other professionals who work in health facilities.

  1. Transportation

Transportation services are very useful for the community. Activities that require a person to move from one place to another make this service very useful and beneficial. This transportation service can consist of land, air, and sea.

  1. Pawnshop

Pawnshops are services that work in the financial sector that are useful from the lower to upper classes of society. This service provides services regarding gold financing as well as services. 

  1. Education

Learning activities can occur in many places, not only in official government agencies. Education is also not only about lessons at school and college, but also being able to learn new soft skills and hard skills. The goal is that people have high interests and talents as well as broad knowledge.

Services Company Transaction Type

Purchase

Businesses need equipment or work equipment to fulfill economic activities. Such as buying quality tools and materials to provide a quality production system as well. Purchases that occur are aimed at making the company’s operations more efficient.

Investment

When setting up a business or company, investment or capital is very important. This capital or investment can be obtained from an investor. When you intend to open a business or a large-term business, then you also need a large capital. But if you only intend to open a small business, you can adjust the capital and investment.

For example, when you want to open a laundry business, of course, your target market is only people around the place of business. However, to meet the needs and quality, you need high-quality tools as a form of good service to consumers. Therefore, you need capital or investment to fulfill and buy these tools. To manage investments and assets, you can use Asset Management Software.

Income

This type of transaction is very important in a business. Without income, a business will not be able to run for long. Income can come from many things, from consumers who buy products or services, investors who invest, selling shares of a company, and others. This income will also be useful for the company’s operational costs. For this reason, services companies need to provide the best service in order to get a large income.

Conclusion

Service companies produce products that are intangible but feel useful and beneficial for consumers. This type of business can help people in carrying out their daily activities. In addition, this business also does not have a cost of goods sold and a general price for its products or services. Transactions in this business are purchases, investments, and income. In service companies, customer satisfaction is the most important thing. Therefore, service companies need to provide the best service to all consumers. This business is also a large-scale business because it has many customers and employees to provide services.

services company
In developing business and company, HashMicro comes with many solutions for your various business needs. HashMicro is an ERP solution provider with the most complete software suite for various types of industries. ERP system is software that can make your business operations more effective and efficient. HashMicro provides an ERP system that integrates directly with IoT so that you can monitor your business in real-time. You can also view all information from various parties only through the ERP system including supply chain system, inventory management system, and much more.

Interest in getting savvy tips for improving your business efficiency?

Muhammad Syahrian
Muhammad Syahrian
Content Writer Intern at HashMicro. Passionate and hardworking person to develop my marketing skill.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Looking for software system to improve your business efficiency?

Get a free consultation with our business expert by filling in this form!

Rachel-Panjaitan

Chelsea
Typically replies within an hour

Chelsea
Looking for a Free Demo?

Contact us via WhatsApp and let us know the software you are looking for.

Claim up to 80% Productivity Solution Grant for various HashMicro Software!
1:40
+6587776207
×
Book a Demo by WhatsApp