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Factors Affecting The Location of a Service Sector Business - Coggle…
Factors Affecting The Location of a Service Sector Business
customers
for businesses that to be near its customers
if quick respond time is needed
services where direct contact with the customer is required
e.g. hairdressers, beauticians, plumbers, electricians
for businesses that do not need to be near its customers
direct personal contact is not necessary as they can be contacted by telephone, post, or the internet
can be located in different parts of the country or even in a different country
personal preference of the owners
business owners can influence where to locate the service centre
they often locate their business near where they live
technology
allowed some services to locate away from their customers
some services conducted through the internet or by telephone which means the business does not have to be near the customer
availability of labour
if business requires large amount of employee then it cannot locate in remote areas --> needs to be in large town/city
if a particular type of skill labour is required then it may also have to locate near to where this labour is found
climate
affect business particularly to tourism
hotels often need to be where the climate is good and near a beach
near to other businesses
some services serve the needs of large businesses
need to be nearby to respond quickly to a call to repair equipment
rent/taxes
if service doesn't need to be on main streets then the business will locate on the outskirts of town to benefit from lower rents and taxes