Editing Tertiary sector of the economy (section)

== Issues for service providers ==
[[File:Risciò-in-avorio.jpg|thumb|Transport service]]
[[File:Automatic Telephone Exchange- Communications in Wartime, London, England, UK, 1945 D23700.jpg|thumb|right|Testing telephone lines in [[London]] in 1945]]
Service providers face obstacles selling services that goods-sellers rarely face.  Services are intangible, making it difficult for potential customers to understand what they will receive and what value it will hold for them. Indeed, some, such as [[consultants]] and providers of [[investment]] services, offer no guarantees of the value for the price paid.

Since the quality of most services depends largely on the quality of the individuals providing the services, "people costs" are usually a high fraction of service costs.  Whereas a manufacturer may use technology, simplification, and other techniques to lower the cost of goods sold, the service provider often faces an unrelenting pattern of increasing costs.

[[Product differentiation]] is often difficult. For example, how does one choose one [[investment adviser]] over another, since they are often seen to provide identical services.
Charging a premium for services is usually an option only for the most established firms, who charge extra based upon [[brand recognition]].<ref>{{cite book|last=De Soto|first=Glenn|title=Fragmented: the Demise of Unionized Construction|year=2006|publisher=Lulu.com|isbn=9781847285775|page=64}}{{self-published source|date=February 2020}}</ref>{{self-published inline|date=February 2020}}