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Cost To Serve

Cost to serve measures the profitability of servicing customers or producing a product. Profitability can be calculated by customer, product, process, facility, and other factors. Ultimately, it represents the value of a customer to a business.

What Small and Midsize Businesses Need to Know About Cost To Serve

Businesses use a cost to serve analysis to determine whether customers, products, and market routes will profit. These facts act as a basis for making business decisions relevant to a particular customer. Companies can use the information to reduce the cost to serve and increase profits.

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