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Service Power Thinking

Almost every object humans produce and sell, can be viewed either from a goods-oriented or service based perspective. When selling a good what we aim to trade is a physical, tangible article. We may want to sell shoes, cars, vacuum cleaners or video cameras. All of the aforementioned items are simply equipment, the value of which is limited by its function and qualities. For example, a customer would pay more money for a high quality car and less for poorer quality, but at a certain point, the quality of the car reaches its maximum as does its value. At this point if we want to add any additional value to our item we need to bundle a service along with it.

What if we were not bound by the limiting perspective of selling just cars? What if what we really provided was an enhancement of the social status? Then we could sell our goods at exceptionally high prices, far above the value of its function. In the luxury goods industry the service is letting everyone know that people who buy certain goods are of a higher social status. By acquiring luxury goods one may benefit from all the marketing services provided. Luxury industry figured out how to attach value to an item without being restricted by diminishing returns of better quality, but is such approach limited only to this specific context?

How can we apply this service perspective in our own jobs to spark innovation? How can it be applied to electricity providers? Pharmaceutical Industry? Or airlines?

Categories: Alex, Service
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