Service facilities can be costly, like hospitals, resort hotels, universities, and company headquarters, or less costly than other types of facilities, like groceries, department stores, restaurants, banks, hotels, cleaners, clinics and low offices.
Factor influence location of retail and service facilities.
A.-Dominant factors
1) Proximity of customers
2) Integration with other parts of organization.
3) transportation costs and proximity to market
4) Location of competitors
B.-Secondary factor
A. Dominant factors
The factors considered for manufactures are also applied to service provides, with one important additions- the impact of location on the sales and customers satisfaction. Customers usually look about how close a service facility is, particularly if the process require considerable customers contact.
Proximity of customers
Location is key factor in determining how conveniently customers can carry on business with firm for examples.- few peoples would like to go to remotely located dry cleaner or supermarket if another is more convenient. Thus the influence of location on revenues tends to be the dominant factor
Integration with other parts of organization
If the new plant or facility is one of a number owned operated by a single organization or group, it should so situated that its work can be integrated with that of the associated units.
Transportation costs and proximity to market
For warehousing and distribution operations, transportation costs and proximity to market are extremely important. With a warehouse nearby, many firms can hold inventory closer to be customers, thus reducing delivery time and promoting sales.
Location of competitors
One complication in estimating the sales potential at different location is the impact of competitors management must not only consider the current location of competitors but also try to anticipate their reaction to the firms locations. Avoiding areas where competitors are already well established often pays.
B.-Secondary factor
Retailer also consider level of retail activity, residential density, traffic flow and site visibility. Retail activity in the area important, a shoppers often diced on impulse to go shopping or to it in a restaurant. Traffic flow and visibility are important because businesses customer arrives in car. Visibility involes distant from the street and size of near by buildings in sings. High residential density insure nighttime and we can business when the population in the area fits the firms competitive priorities and target market segment.
