Commodity service

Commodity-service ( Engl. Commodity service , by commodity .. And Others Allerweltsprodukt), also standard service or routine service , is a standardized , often automated service provided by different vendors is provided in actually or supposedly similar fashion.

Examples

Examples of automated commodity services are:

Functionalities of self-service machines without a sales function (e.g. shoe shine machine , massage chair , ATM , empties machine , money exchange machine , car wash )

Performance of a funfair ride

Core services of a data center or telecommunications service provider

Functionalities of online banking

Examples of non-automated commodity services are:

Blood drawn from the doctor
Garbage collection
Telephone inquiries (partially)
Standardized private customer business for banks and insurance companies (excluding advice and sales)

Pricing models

The following pricing models are common for remuneration for commodity services:

Fixed unit price: is charged for each individual use of the service (e.g. pay per view )
Fixed price per unit of distance or time: is charged for each unit in which the service is used (e.g. price per mile ; price per minute )
Flat rate ( flat rate ): allows the customer to the service as many times per unit of time (eg months.) At a fixed price to avail.

Often, commodity services are not billed at all (or not recognizable for the customer) (free service). While the total price officially only consists of fees for non-commodity services, the contribution margin for commodity services results from a mixed calculation .

Competitive situation

As long as the market for a commodity service is not saturated , imitators usually push into the market in quick succession in order to secure market share .

On the other hand, because of their great similarity, the market for commodity services is characterized by a low level of loyalty ( brand loyalty ) or a high willingness on the part of buyers to switch to providers. Since the services of the various commodity providers often only differ in price (and only insignificantly in terms of "content"), the providers can easily be "exchanged" from the point of view of the customer. This gives the buyers great power over the sellers ( buyer's market ).

The competition for customers is intense and is mainly based on price . He sometimes has ruinous features . The competition demands extreme cost awareness (often associated with paying low wages ) and a high willingness to innovate from the providers .

For providers , the business with commodity services only pays off with large sales volumes (bulk business). Markets for commodity services therefore tend to be concentrated; H. Formation of oligopolies or duopolies .

Differentiation strategies

It is in the nature of commodity services (standardization) that their providers can only partially differentiate themselves on the market through the properties of these services . Frequently practiced differentiation approaches include:

Joint billing of commodity services in conjunction with value-added services (e.g. consulting services ) and
“Atomization” of services into elementary services (“ no frills ” concept) that can be freely configured by the customer and must be paid for individually.

antonym

The opposite of a commodity service is an individual, individualized or individual service ( tailored service ). It responds to special wishes and requirements of the client or takes into account the special features of the service recipient or " external factor " (is therefore "tailor-made"). The transition between standardized and individualized services is fluid.

The extreme form of an individual service is an expert service. You can only by a specialist are performed (possibly even a de facto - monopoly has) and is characterized by the following features:

high degree of individuality , innovation , complexity and risk of the task;
high demands on the knowledge , ability and mental agility (e.g. intelligence , creativity , flexibility ) of the service provider.

literature

Manfred Bruhn : Commodities in the service sector. Special features and implications for marketing. in: Margit Enke , Anja Geigenmüller (Eds.): Commodity Marketing. Basics, special features, experiences. 2nd edition, Gabler, Wiesbaden 2011, pp. 57-77, ISBN 3-8349-2566-7 .