The Stock Market Moose
23Nov/100

Would you like fries with that?

The service sector is the fastest growing among the largest economies. It requires people here and now, therefore cannot be outsourced(as easily). Most attempts at cutting service expenses by outsourcing them have had poor results. Usually if a service is outsourced it's not critical to a companies revenue. For example, customer service for products you have already paid for. These types of services are usually not of key concern to a companies welfare. On the other hand, services that are of key concern to a companies welfare are usually afforded a great deal of attention and financial backing.

One of the most visible existences of a service is food sales. It's a growing trend among the most successful of food services to have better trained and better paid employees, with great benefit packages.

Starbucks was a pioneer of this philosophy. Like them or not, they killed their closest competitors. With retails sales on the rise again, it would be a good idea to look for services that go above and beyond the status quo when it comes to customer satisfaction.

If two companies are otherwise equal, the one that gives whipped cream and a cherry on top will most likely have a lot more repeat customers, and an improving reputation. In contrast a company who makes you talk to someone from half way around the world in order to cut expenses will have a diminishing value that's not necessarily reflected on the last balance sheet.

Filed under: Economy Leave a comment
Comments (0) Trackbacks (0)

No comments yet.


Leave a comment


No trackbacks yet.