Cash Flow: Revenue (Actual, Part 4)-Differentiate Services
July 30th, 2009
Copyright © 2009 Integrated Profitability TM
This is the fourth article on increasing actual revenue to improve your company’s Cash Flow. The last article focused on differentiating products to create opportunities to increase prices or to naturally influence customers toward certain products. This one looks at the same type of opportunities for services.
● Differentiating Service offerings
Similar to differentiating your products, this approach adjusts the level of service that is provided, either as an adjunct to a product (such as extended warranties with differing coverage and differing lengths) or as differing levels of service (as when spas offer a series of more and more complete packages).
Differentiating your service levels usually also has an expense component. More service costs more to deliver–and we will cover that side of the equation in the articles on the expense side of improving Cash Flow. For the revenue side, the better the level of service, the higher the price. The higher the quality of the service, especially in comparison to competitors, the more a premium price may be charged.
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