Several ways for manufacturers to profit from serv

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Several ways for manufacturers to make profits through services (2)

self cognition of service-oriented enterprises

in fact, many product manufacturers are already providing services to customers, but they have not realized this yet. Ningwu company is a pillar enterprise of the transportation new material base in border towns. If they charge for services already provided, they can make a profit. The first step is to make the managers and customers of the enterprise aware of the value of the existing services of the enterprise

takes the Merck Co of the pharmaceutical giant (Mer CK on the wall thermal insulation foam materials) as an example. In certain products sold by Merck, its French branch has always delivered goods for customers free of charge (in fact, the delivery cost is included in the drug pricing). Since special drugs are expensive and in small demand, and the delivery cost only accounts for a small part of the invoice value, Merck believes that it is natural to provide free delivery and insurance. Since the delivery cost is not listed separately in the invoice, the customer does not realize the value of Merck's free delivery service. A few years ago, Merck reassessed this practice. Merck randomly selected 100 customers and changed the delivery terms from "including delivery and premium" to "additional charge". The product price remained unchanged, and 90% of customers were unaware of the change and paid an additional charge; 10% of customers were aware of the changes, and half of them insisted on performing according to the previous terms. Although it still delivers goods free of charge for 5% of its customers, Merck has successfully changed from "free" to "charging" for the remaining 95% of its customers. Although customers do not pay much for it, Merck's profits will increase a lot once this new charge is implemented in France

the transformation of services from free to charge shows that services are valuable to both enterprises and customers. Air Liquide, a French natural gas supplier, has also adopted this strategy. Air we hope that members of this new alliance can jointly promote the use of other innovative materials in cars. Liquide usually buys thousands of liquefied gas cylinders to deliver gas to industrial users. Only transportation fees are charged, and liquefied gas cylinders are not charged. As a result, customers did not notice that they had accumulated a large number of liquefied gas cylinders, which was a considerable amount of liquid inventory. Since the mid-1990s, airliquid began to charge 5-7 euros per month for each liquefied gas cylinder. This measure not only brings hundreds of millions of euros of revenue to Airliquide, but also makes customers aware of the value of liquefied gas cylinders. Once the liquefied gas cylinder is labeled with a price tag, customers will optimize their inventory. As a result, airliquid significantly reduces the liquid inventory and makes the best use of liquefied gas cylinders

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