Limited Service - Meaning & Definition

Published by MBA Skool Team, Last Updated: November 17, 2016

What is Limited Service?

Limited service means restricting the services being offered to the customers due to limited resources, high costs, geographical restraints etc. A limited service entity can an entity which provides few services to customers at some area although that same entity might be involved in providing full service at some other area.

If we talk about marketing, the first thing that comes to mind when we hear about the term “limited service” is the limited service wholesalers or the cash and carry wholesaler. These are a kind of wholesalers who generally operate their business from a warehouse where customers come, pay in cash and carry the goods purchased. These are the people who do not entertain credit and only accept cash. Their customers are generally the retailers. Ex: Metro Cash and Carry Company is a limited service business.

Another example of limited service business is the mail order wholesalers. These wholesales bring the product ordered over internet to your address. You pay them the amount and get the product. Other examples can be truck wholesalers or jobbers.

We can also view another angle of the limited service in marketing. Let us understand with an example of restaurant. A limited service restaurant is a restaurant where the services is limited. Although customers get food but they have to pay first for the food then they can get the food. Often such restaurant have take away facility and no or little seating area. Similarly there are limited service banks also that offer few services like deposit and withdraw but may not have all facilities that bank have. For example, the bank might not be having loan facility, locker facility etc. in that area.

Hence, this concludes the definition of Limited Service along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.

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