4 Questions
Why is cost-based pricing often more difficult for services?
The cost of goods sold is a small or nonexistent portion of the total cost for intangible products.
What contributes to the challenge of accurately forecasting labor needs in many service settings?
Fluctuating demand in service settings
Why is finding good personnel considered an ongoing challenge in service industries?
High workforce turnover and difficulty in finding good personnel
What makes cost-based pricing more difficult for services compared to tangible product settings?
The small or nonexistent portion of the total cost that is attributed to cost of goods sold for intangible products
Explore the challenges of cost-based pricing for services, including the difficulty of calculating cost of goods sold for intangible products, forecasting labor needs in fluctuating demand, and managing high turnover in service industries.
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