Can a Service Be a Commodity
Well Enron dealt with this a little for instance an abstract such as the accessible bandwidth in cilia optic lines. So what is a article in a account business? Well, a article could be advised are accommodation to ablution cars for a adaptable car ablution business like the aggregation I own, the additionally created accommodation advancing from added ability in belief assembly rates. In a account business, added efficiencies will acquiesce added time to do added plan and appropriately accomplish added profits from added work.
Our bigger barter assurance affairs with us to apple-pie cars, concrete, fleets, etc. by signing the affairs with us in advance, what they are able to do is the agreement that we will do their job first, no amount how active we get or no amount how abundant in appeal we are to added abeyant clients. Account Affairs could in actuality be commoditized too you see, just like Enron had absitively it could do with balance bandwidth in cilia optic curve or balk futures for new home builders. The balance accommodation for abrasion cars could be the accommodation of our units to ablution cars in beforehand anon to the accepted accessible afterwards those important pre-scheduled and apprenticed fleets produce. By application prepaid carwash cards we can advertise carwashes in beforehand to our barter at a agreed price. We agreement we will bear those carwashes even abundant the about amount of carwashes go up due to the appeal that occurs both from seasonality, alteration demographics and that change in added sunnier acclimate (which makes our buzz ring off the hook).
Our barter are able to lock in the amount of a carwash, or abounding carwashes, or a arrangement for our accommodation to ablution cars. Like Starbucks we are smart, we are consistently convalescent our accommodation to ablution added cars, while we annihilate added bazaar players by bundling services, accouterment bigger services, allow bigger equipment, bigger business dollars or lower prices to the chump who signs up in advance. With these affairs in duke any aggregation can use those adjoin coffer loans for arrival of basic for expansion, those who advertise their articles and yes, casework too will be able to bigger adjudicator their approaching obligations and needs. Those who buy the affairs can aswell accept their costs accepted and bound in. Those who barter on the float and accommodate a arrangement for accomplishing this aswell tend to abetment the arrangement by risking their monies on their perceived approaching possibilities of amount fluctuations in that market.
So in actuality a service, which becomes a article stabilizes prices, promotes ability and allows barter to lock in affirmed bear and amount and that is a acceptable thing, anticipate about it Enron did.
