Mixed Goods and Services

 

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A business that provides its customers with both goods and services will probably have a somewhat more complicated business plan than a business that primarily provides either goods or services. There are many logistical considerations relating to managing the interaction between the delivery of goods and the performance of services.

Take the case of a restaurant, where customers expect to receive good food and to be served by an attentive wait staff. Everything has to come together for each customer in order to meet his or her expectations. This is no mean feat. Probably everyone has experienced an "almost good" meal, where one small aspect of the meal didn't go quite right. Perhaps the food was excellent but too long in coming, or maybe you had to ask for the check three times before you finally got it. Whatever the reason, it is clear that people expect both the product and the service to meet their standards. If either fails, the entire sales event is a failure.

The financial aspects of a mixed goods and services business require careful scrutiny. The relative mix between goods and services must be managed to maintain a reasonable return on the entire enterprise. Pricing is more of an issue because you are trying to cover the wide variety of components that make up the entire package. How do you associate your labor costs with the cost of goods sold? The business planning process affords you with an opportunity to examine this and other relationships that can impact on the profitability of your business.