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Different Types of Sales That Service Companies Performs Service companies have entered into a new era in their global markets. In fact, they are not just different but a whole new chapter in service provision. A service company engages in procurement activities such as buying, selling and providing services. A merchandizing company only buys tangible products and represses them for retail sale. Service businesses mainly sell non-tangible services instead of tangible products. In digital of an operating business an early stage is the period between the acquisition of the raw materials and the delivery of the final product to the client. The difference between an operating business and a service business is that in the former, the products are provided and managed by the company while in the latter, the products are bought and managed by a third party with the involvement of accounting and other administrative personnel. The difference between these two types of organizations is that in the latter, accounting is performed by an external firm while the former performs all the tasks involved in the acquisition, production, logistics, sales etc. So far we have established that service companies are less affected by changes in the price structure of merchandise due to competition. What then happens is the gap between demand and supply. There is a high risk of duplication of services if a company is selling the same merchandise under different brand names. Duplication of cogs or even of entire product lines can lead to severe losses for a company. An effective and efficient supply chain management system is required to ensure that there is no duplication of service cogs and that there is a consistent flow of merchandise to the clients. The cost of goods sold will always be determined according to the cost of production i.e. according to what the commodity can produce at the most economical rate in the location in which it is being produced. digital is known as cost of good production or COG. In digital to have an efficient COG, service companies should concentrate on producing more quantity of goods in less geographical area. This is where the difference between the two types of organizations comes into play. Merchandise sold to retail stores will always involve a minimum volume or level of sales to satisfy a customer's need for it. However this does not necessarily mean that the retailer has any control over the type of merchandise being sold. On the contrary, it is the retailer who decides what it wants to sell and how much of it. If the retailer sells the same goods under different brands, i.e. under similar names with similar logos and in the same format and size, it is a duplication of the service cogs i.e. Service organizations may also deal with manufacturers directly. These companies can be run separately or they can come under one single company which would act as their agent and negotiate on behalf of both the parties. In such cases, these companies would be buying their services from the manufacturer under a discount window so that they can pay within a pre-decided discount window. However this is only possible when the manufacturer is willing to cooperate. The second form of dealing with a retailer is the so called discount window. Under this form of dealing, the retailer and supplier agree to set discount prices and the customer pays them without any prior notice. There are many advantages of such a deal. For one thing the supplier or his agent will not charge any commission on the purchases. The price agreed upon will be the same whether the customer visits the retailer or visits the supplier. The main advantage of such discounted sales is that they attract more customers. Under the discount window the retailer is assured of getting at least some part of his money back, even if he does not convince the buyer to purchase the product. In other words, the customer paid his money and the retailer will get at least a percentage of that amount as his profit. In the case of a service company, the customer may refuse to buy the service unless he gets a benefit. This benefit could be in the form of cash back or a reduced fee.
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