Difference between Goods and Services

Goods vs. Services

What is Difference between Goods and Services? Almost all things can be separated into categories of goods and services. Both things are very different and although there are many companies that offer us one or the other or both at the same time, the fact is that there are many people who do not know how they differ.

Difference between Goods and Services

To clarify your possible doubts about this subject, we will tell you the difference between goods and services.

Goods
In economics, goods are considered tangible objects and with this we are obviously referring to things that can be seen, touched, smelled … Goods can be used or consumed.

Goods can easily be passed from one person to another. They are possessions, personal property or items that can be marketed. They can be exchanged for money or for another good.

Services
Services are completely different from goods. They are intangible comforts, which cannot be seen, smelled or touched as if they were objects. Generally services are obtained in exchange for money, but in some exceptional cases can be offered in exchange another service.

Some of the most common services we often request are electricity, cable, gas, water, among others. People who request services like these do not pay only once for them (as usually happens in the case of goods), but pay a fixed income.

Finally, today more and more companies and businesses are focused on offering both goods and services to the public. For example, the food served in a restaurant is a good thing; but the environment of that business (something the trader invests in) can be considered a service. The business owner can see advantage in offering both things to their customers.