Know the Difference between Service and Trade Companies

To start a business, industry players should first understand what business will be carried out. There are various types of businesses that are interesting to do in Indonesia. The business is divided into two types, namely businesses in the service sector and in the trade sector.

Therefore, when you start to pioneering, you should determine what companies will be established. However, before that, it is better if there is an advance understanding between the service company and the trading company which will be implemented later. What are the differences? Check out the full review below!

Service Company

Service companies are industries that move with the aim of generating profits in the form of selling services in the form of abstracts. In other words, service companies offer formless assistance as a product or item.

In Indonesia, this type of company is growing rapidly. Some of them are financial consulting services, online and offline tutoring, and marketing strategy services. To find out clearly, the service companies have 3 characteristics, namely as follows:

1. It does not have a standard official price on the market

2. It only sells services without physical products that can be seen

3. It does not require capital or production materials

Although it does not require large capital, it does not mean that service companies do not have significant risks. If observed carefully, this company still has several risks, for example:

1. There are no many choices of running a marketing strategy

2. It is quite difficult to believe because there are no testimonials from reputable customers

3. Customers cannot complain because there is no physical product offered

Therefore, to avoid misunderstandings between service providers and customers, it is a good idea to make an agreement together with written evidence before the company starts working on the problems faced by customers.

Trading Company

Unlike service companies, trading companies are industries that sell products or goods available to customers. Trading companies themselves do not do their own production of goods but take or buy products from supplier supplies in the form of materials that have been previously made.

For its own purposes, trading companies focus on the process of reselling products or goods that have been taken from suppliers by taking advantage of the difference in sales.

In addition, there are various differences between trading companies and other companies, such as:

1. The stock of finished goods are available

2. The cost of production must be issued to facilitate the determination of the cost of goods

3. There is no report on the required accounting costs

The types of companies that have monopolized most of the markets throughout the world are trading companies. This is caused by a variety of innovative products offered so that customers get what they need.

Thus, some information needs to be known about the differences in service companies and trading companies. In Indonesia, one of the strategic locations of trading companies that also keep abreast of technological trends, namely in Karawang New Industry City (KNIC).

This area located in West Java carries many advantages including world-class integrated technology and systems so that the presence of world-class infrastructure is clearly visible in this place.

It not only aims to support the performance of a manufacturing company, but KNIC is also present to support the acceleration of regional economic growth and present a Multiplier Effect that is useful for socio-economic development in Karawang and areas in the West Java region.


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