Business Services
Whether a company manufactures its own products or buys in from suppliers, it requires business services to help manage costs and provide quality. From warehousing and shipping to marketing and legal support, this sector of the economy contributes greatly to a country’s GDP.
The industry’s wide range of functions makes it easy for employees to find jobs in the field. The type of work can vary depending on the industry, but all types of business services are needed to help a firm function effectively and efficiently. These include marketing, finance, IT, supply chain management, accounting, human resources, real estate and other areas that support a business but do not produce tangible goods.
A specialized business service provider may help a firm improve its marketing strategy, increase return on ad spend and promote a brand’s image. This kind of business service can save a firm time and money that would be spent on implementing in-house initiatives, and it also ensures that the work is completed by professionals who know how to deliver results.
Other specialized business services may include consulting, property maintenance and IT, all of which can help companies cut expenses. For example, a IT service provider may help a company improve its computer systems or optimize its web presence to reduce operating costs and maximize productivity. Similarly, property maintenance and IT workers can help a company maintain its building or make its computer networks more efficient.
These types of business services are important to a company because they reduce the need to invest in infrastructure or personnel, which can be costly. These services can be purchased from outside providers or outsourced to third parties, which is becoming increasingly common in an effort to reduce operating costs and focus on core competencies.
A thriving and competitive business service industry is vital to the economy. It is expected to continue to grow, with technology and digitalization transforming the sector. Companies are seeking new ways to outsource their services, especially during the coronavirus pandemic, as it is more cost-effective and convenient than maintaining an in-house staff. This has led to many startups emerging with innovative solutions and ideas that can meet the transforming needs of businesses. The resulting competition can lead to price reductions for customers, but it is essential that each company continues to maintain its profit margins so it can pay itself and cover business expenses. To do this, it will need to add a markup — typically a percentage or dollar amount — to its base cost. This additional profit will allow it to recoup its costs and remain competitively priced for the value it offers. The pricing calculator tool below can help you determine and optimize your markups.