Profitable Value Added Services

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Profitable Value Added Services

In the HBR of May 2008 there is an article from Werber Reinartz and Wolfgang Ulaga about how manufacturing companies can sell value added services more profitably. Four steps to developing a profitable services capability are mentioned:
1. Recognize that you already have a services company. Charge for services
2. Industrialize the back office. Exploit new technologies
3. Create a service-savvy sales force. From cost-plus pricing to value-based pricing
4. Focus on customers' processes.

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