Can a Service Be a Commodity

Well Enron dealt with this a little for instance an intangible such as the available bandwidth in fiber optic lines. So what is a commodity in a service business? Well, a commodity could be considered are capacity to wash cars for a mobile car wash business like the company I own, the additionally created capacity coming from increased efficiency in studying production rates. In a service business, increased efficiencies will allow more time to do more work and thus make more profits from additional work.

Our biggest customers sign contracts with us to clean cars, concrete, fleets, etc. by signing the contracts with us in advance, what they are able to do is the guarantee that we will do their job first, no matter how busy we get or no matter how much in demand we are to other potential clients. Service Contracts could in fact be commoditized too you see, just like Enron had decided it could do with excess bandwidth in fiber optic lines or timber futures for new home builders. The excess capacity for washing cars could be the capacity of our units to wash cars in advance directly to the general public after those important pre-scheduled and contracted fleets produce. By using prepaid carwash cards we can sell carwashes in advance to our customers at a predetermined price. We guarantee we will deliver those carwashes even enough the relative price of carwashes go up due to the demand that occurs both from seasonality, changing demographics and that change in more sunnier weather (which makes our phone ring off the hook).

Our customers are able to lock in the price of a carwash, or many carwashes, or a contract for our capacity to wash cars. Like Starbucks we are smart, we are constantly improving our capacity to wash more cars, while we eliminate other market players by bundling services, providing better services, afford better equipment, better marketing dollars or lower prices to the customer who signs up in advance. With these contracts in hand any company can use those against bank loans for influx of capital for expansion, those who sell their products and yes, services too will be able to better judge their future obligations and needs. Those who buy the contracts can also have their costs known and locked in. Those who trade on the float and provide a system for doing this also tend to assist the system by risking their monies on their perceived future possibilities of price fluctuations in that market.

So in fact a service, which becomes a commodity stabilizes prices, promotes efficiency and allows customers to lock in guaranteed deliver and price and that is a good thing, think about it Enron did.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

In The News:
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.welt.de/english-news/article2559512/Ukraine-against-using-force-to-free-ship.htmlcid=1253741000ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNF_K03CeXBfgH5kKruavo_6pME0hAimg src=http://news.google.com/news?imgefp=R7ccXxnz7bMJimgurl=www.welt.de/multimedia/archive/00680/eng_Pirates_BM_Baye_680736g.jpg width=80 height=53 alt= border=1brfont size=-2WELT ONLINE/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://news.xinhuanet.com/english/2008-10/14/content_10189779.htmcid=1253741000ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNElhwsfWeibz4C7KjHcRbnmR2EqLAKenya maintains no bnegotiation/b policy with Somali pirates/abrfont size=-1font color=#6f6f6fXinhua,nbsp;Chinanbsp;-/font nobr12 hours ago/nobr/fontbrfont size=-1b.../b over the weekend issued 72-hour deadline for the ransom to be paid or else they blow up the Ukraine ship but analysts say it was a bnegotiation/b gimmick. b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.youtube.com/watch%3Fv%3DgCurKNlPF4gcid=1253741000ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNHW8292uc8zgT0x3v1DqdCRjnOZ1gVideo: Pirates threaten to blow up ship/a font size=-1 color=#6f6f6fnobrRussiaToday/nobr/fontobject width=448 height=356param name=movie value=http://www.youtube.com/v/gCurKNlPF4g/paramparam name=wmode value=transparent/paramembed src=http://www.youtube.com/v/gCurKNlPF4gtype=application/x-shockwave-flashwmode=transparentwidth=448height=356/embed/objectbr/fontfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.kbc.co.ke/story.asp%3FID%3D53061cid=1253741000ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNGgucNcr7KpHHJyMWsDEJZ2e1y8qQPirates reject local mediator/a font size=-1 color=#6f6f6fnobrKenya Broadcasting Corporation/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.nytimes.com/2008/10/09/world/africa/09pirates.htmlcid=1253741000ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNFsvh5NCoNem3IdAuwhIb8XbJ2cjwSomali Pirates Said to Be Near Arms Cargo Deal/a font size=-1 color=#6f6f6fnobrNew York Times/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.mareeg.com/fidsan.php%3Fsid%3D8248%26tirsan%3D3cid=1253741000ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNHkd3HINYfn5kQRLteIaQ5KTL57wwnobrMareeg/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.gantdaily.com/news/36/ARTICLE/32991/2008-10-08.htmlcid=1253741000ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNFhfb1yUQq2AtK-dBDv8fkjYbWvWQnobrGant Daily/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1253741000hl=ennobrall 1,597 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.naplesnews.com/news/2008/oct/13/lee-school-district-unions-head-back-negotiation-t/cid=1257287705ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNE7K0rz_ohHHI2RYqIv-doVThLVPQLee school district unions head back to bnegotiation/b table/abrfont size=-1font color=#6f6f6fNaples Daily News,nbsp;FLnbsp;-/font nobr8 hours ago/nobr/fontbrfont size=-1The associations that represent them in contract bargaining, which less than half are members of, will be reopening bnegotiations/b Wednesday evening with the b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.courierpress.com/news/2008/oct/14/negotiation-keeps-buildings-lights-lit/cid=1257549770ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNHo5AweZCgkvDiLzRyAEpTc5BN6zQbNegotiation/b keeps building#39;s lights lit/abrfont size=-1font color=#6f6f6fEvansville Courier Press,nbsp;INnbsp;-/font nobr4 hours ago/nobr/fontbrfont size=-1By LINDSEY ZILIAK Electrical service to Sally Milner#39;s apartment, as well as to the other units at Cambridge Arms Apartments, nearly was disconnected last b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.star-telegram.com/225/story/971477.htmlcid=1257441777ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNEXAWFv6oagWStPirYW1FXEmGiKfwFort Worth City Council should approve new fee agreement for b.../b/abrfont size=-1font color=#6f6f6fFort Worth Star Telegram,nbsp;TXnbsp;-/font nobr5 hours ago/nobr/fontbrfont size=-1The Star-Telegram Editorial Board previously has urged that the city of Fort Worth examine whether it was paying excessive fees for the bnegotiation/b of b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.voanews.com/english/2008-10-13-voa25.cfmcid=1255842506ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNEJGO-o3nWjq2BmAtMAtUxHEyd8uQimg src=http://news.google.com/news?imgefp=JlRLXT_AFuoJimgurl=www.voanews.com/english/images/ap_north_korea_yongbyon_nuclear_facility_175_13Aug02.jpg width=80 height=80 alt= border=1brfont size=-2Voice of America/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://online.wsj.com/article/SB122385733887027383.html%3Fmod%3Dgooglenews_wsjcid=1255842506ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNH4jICLDhQulsHNdMiuMlrXqFGnEABush#39;s North Korea Surrender Will Have Lasting Consequences/abrfont size=-1font color=#6f6f6fWall Street Journalnbsp;-/font nobrOct 12, 2008/nobr/fontbrfont size=-1Delisting the Democratic Peoples Republic of Korea (DPRK) as a terrorist sponsor represents a classic case of prizing the bnegotiation/b process over substance b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.youtube.com/watch%3Fv%3DM6uFligRRUYcid=1255842506ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNHlem3BD0wZPZeynngu6YFRRQtZmAVideo: N. Korea Announces End to Nuclear Freeze/a font size=-1 color=#6f6f6fnobrAssociatedPress/nobr/fontobject width=448 height=356param name=movie value=http://www.youtube.com/v/M6uFligRRUY/paramparam name=wmode value=transparent/paramembed src=http://www.youtube.com/v/M6uFligRRUYtype=application/x-shockwave-flashwmode=transparentwidth=448height=356/embed/objectbr/fontfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://news.bbc.co.uk/1/hi/world/asia-pacific/7662686.stmcid=1255842506ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNGct7BRxobH66m0ZyuXiGI-rqL9Kw#39;US-N Korea nuclear deal close#39;/a font size=-1 color=#6f6f6fnobrBBC News/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.examiner.com/x-243-Progressive-Politics-Examiner~y2008m10d11-North-Korea-removed-from-terror-listcid=1255842506ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNFIYdW2ibtnGXXPAXZ81gI9hdC2cQNorth Korea removed from terror list/a font size=-1 color=#6f6f6fnobrExaminer.com/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.sfgate.com/cgi-bin/article.cgi%3Ff%3D/c/a/2008/10/12/MNN013FHV9.DTLcid=1255842506ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNGNVDDkJtfWaEoeA94VfJcmhdo32wnobrSan Francisco Chronicle/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.guardian.co.uk/commentisfree/2008/oct/10/korea-weaponstechnologycid=1255842506ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNFnZV6cd7VI5G3WMy44AmUlBuiLGgnobrGuardian Unlimited/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1255842506hl=ennobrall 3,943 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.washingtonpost.com/wp-dyn/content/article/2008/10/13/AR2008101302169.htmlcid=1257522302ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNGmQdiAjXUKc-nL-zwZTL3KvuyaGAIn Korea, Rituals of Absurdity/abrfont size=-1font color=#6f6f6fWashington Post,nbsp;United Statesnbsp;-/font nobr6 hours ago/nobr/fontbrfont size=-1What this cannot possibly be is a genuine bnegotiation/b, by which I mean one whose ultimate outcome will be the dismantling of North Korea#39;s nuclear program b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.sta.si/en/vest.php%3Fs%3Da%26id%3D1328502cid=1257337646ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNFEcH3OY1VKDxPHAfR8xX693kVaIgSTA - Slovenska tiskovna agencija / Slovenian Press Agency/abrfont size=-1font color=#6f6f6fSTA - Slovenska Tiskovna Agencija,nbsp;Slovenianbsp;-/font nobr17 hours ago/nobr/fontbrfont size=-1Rupel pointed out that maps were to be found in one or two bnegotiation/b chapters which contain quot;slightly excessive solutions regarding the borderquot;. b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.northjersey.com/politics/30930594.htmlcid=1257529238ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNEHPjmF1WC5CYkfsbh7TcaH6k5cWwObama#39;s team keeps Ferriero at arm#39;s length/abrfont size=-1font color=#6f6f6fNorthJersey.com,nbsp;NJnbsp;-/font nobr4 hours ago/nobr/fontbrfont size=-1Bill Maer, a spokesman for the BCDO, said he was aware only of the bnegotiation/b between the BCDO and the state party quot;for space and phone usagequot; for the b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://voanews.com/english/2008-10-08-voa5.cfmcid=1256705246ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNGnED_QaMTSY6rowf26l7Fm2Aavjgimg src=http://news.google.com/news?imgefp=djNPN1--jYUJimgurl=voanews.com/english/images/ap_us_mccain_obama_nashville_debate_08oct08_190.jpg width=74 height=80 alt= border=1brfont size=-2Voice of America/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.huffingtonpost.com/kathleen-reardon/nearly-as-far-fetched-as_b_132321.htmlcid=1256705246ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNFVy-15O7cfMPd4X4grMBZaWqBG7ANearly As Far-Fetched As The Maverick Lie -- bNegotiation/b Preconditions/abrfont size=-1font color=#6f6f6fHuffington Post,nbsp;NYnbsp;-/font nobrOct 6, 2008/nobr/fontbrfont size=-1First, it#39;s either naive or a fabrication when McCain suggests Obama will suddenly pop up at a bnegotiation/b with the leadership of Iran. b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://fredericksburg.com/News/FLS/2008/102008/10122008/415937cid=1256705246ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNFr30d_NOMzDBhSoM-CnVtmhpcZIAPreconditions do not work; try #39;preparations#39;/a font size=-1 color=#6f6f6fnobrThe Free Lance-Star/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.stljewishlight.com/topstories/292813583353588.phpcid=1256705246ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNFMoarmukhis-o329OQyTlGm_qT6AVP candidates: Peace process is a priority/a font size=-1 color=#6f6f6fnobrSt.Louis Jewishlight.com/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1256705246hl=ennobrall 88 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.theaustralian.news.com.au/story/0,25197,24486160-5013871,00.htmlcid=1257529173ei=enP0SLGmI4yQ6wPKzdCcDQusg=AFQjCNE3gZQ-sQFlVp70mhMd6HH9EA0ibARudd to use surplus to battle slump/abrfont size=-1font color=#6f6f6fThe Australian,nbsp;Australianbsp;-/font nobrOct 12, 2008/nobr/fontbrfont size=-1Mr Rudd said yesterday the financial crisis meant he was facing a more difficult bnegotiation/b with the states over the funding deals. b.../b/font/div/font/td/tr/table
negotiation - Google News


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