Are professional services a commodity?
- 1. Professional Services Basics
- 2. Client Management and Retention
- 3. Project Definition
- 4. Resource Planning
- 5. The Ultimate Guide to Capacity Planning
- 6. Project Visibility
- 7. Billing for Projects
- 8. Project Profitability
- 9. Professional Services Software For Project Management
- 10. A Guide to Time Tracking for Consultants and Professional Services
- 11. FAQ
- 12. Glossary
- 1. Professional Services Basics
- 2. Client Management and Retention
- 3. Project Definition
- 4. Resource Planning
- 5. The Ultimate Guide to Capacity Planning
- 6. Project Visibility
- 7. Billing for Projects
- 8. Project Profitability
- 9. Professional Services Software For Project Management
- 10. A Guide to Time Tracking for Consultants and Professional Services
- 11. FAQ
- 12. Glossary
Are professional services a commodity?
Generally speaking, professional services are not a commodity. A commodity is defined as a fungible good or service. This means that the item or service is virtually interchangeable because it carries the same or nearly identical properties and value as another item. For example, money is considered a fungible good.
Professional services are not a commodity because of the variables associated with it. For instance, two PS firms that offer the same services will never give you the same quality of output — even when the project scope and expectations are identical. They may also charge different amounts of money for their work. These factors make it a non-fungible service and, therefore, not a commodity.