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Analyze article: 'How to Sell Services MORE Profitably'

See attached file for the article.

Article: Reinartz, W. & Ulaga, W. (2008) "How to Sell Services MORE Profitably,"

The assigmnent is below:

1. Please read the journal article and discuss the four recommendations authors make to sell services more profitably.

2.Please submit a summary of the article that includes causes of lower profits and authors' recommendation for improving profitability.

3. Focus on the introduction, conclusion, and discussion section of the article and not so much on the method of analysis.


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Sell Services More Profitably


According to Reinartz & Ulaga (2008) organizations can get competitive advantage with the help of value added activities. The value added activities assists to provide customer service in an efficient manner. It leads to increase profit by reducing cost to the company and base of satisfied customers (Reilly, 2010). At the same time, Reinartz & Ulaga have stated that an organization should charge a tiny amount for simple service such as transportation, insurance etc. It assists to build enthusiasm to add more complex services in the organization system (Reinartz & Ulaga, 2008). Effective service delivery, sales force and customer relationship are important to safeguard for an organizational profits.


On the basis of effective analysis of given article, there are some important recommendations that authors make that can lead to improve service profitability. These recommendations are as followed:

Recognize as Service Company: Reinartz & Ulaga (2008) have suggested that an organization can improve its profitability with the help of moving from free to fee service offering. Free delivery of product categories will increase the cost of transportation and insurance. It will decrease organization profit. An invoice included with service cost will increase a small or tiny amount to the customer (Reinartz & Ulaga, 2008). The customers do not focus on a little amount and may also recognize to add shipping, insurance cost in their invoice of product categories. At the same time, a sum of several tiny amounts will lead to increase organization profitability.

A survey and study by pharmaceuticals giants Merck provides a weight-age to this recommendation. Merck has selected 100 customers randomly to research on its new system implementation of fee for services rather than free ...

Solution Summary

The expert analyzes how to sell services more profitably.