Business Product Explanations

Products, in general, are items sold by a developer, manufacturer or company to make money. If we put the shoe on the other foot, products are goods or services which people want or need to fulfil a specific function. A business product is the same thing, only they are made, or targeted at businesses instead of the individual, everyday consumer. Commodities, as with many other things in life, can be divided into various categories.

Companies buy entire buildings to build their empires. These facilities are needed to carry out the company or businesses operations. Facilities could include aviation hangars, a packaging plant, cold stores or factories and smaller examples are offices, storerooms, or headquarters. So, these are products in which to store, house, manufacture, build, produce and do administrative tasks.

Processed Materials and Components

Processed materials and parts are created by companies using raw materials. These materials and parts are usually sold to other businesses which include them in their final products, generally after putting them through a process. The materials and components produced or created by companies can sometimes be sold to the end consumer too.

Let us look at fibreglass, for example. Company 1 uses raw materials to produce fibreglass. Company 1 then sells the fibreglass to company 2 so they can make kits for beach buggies. However, company one might also sell the fibreglass to a local surfer (the end consumer) for him to patch his board.

Raw Materials

The manufacturing cycle always begins with fresh material. The raw material is extracted from the environment. This material is worked on and processed to produce a final product. This extends to the manufacturing process productions. The product will boast this raw material as a single element. The Raw materials are what is needed to make and produce absolutely everything you buy from a retailer.

Maintenance, Operating Supplies and Repairs

As with your house or apartment, companies need products to keep them moving forward like a well-oiled cog. Cleaning products, toiletries, light bulbs, and reams of paper are examples of these. These products or services are needed for operating, maintaining, and repairing the everyday items that are not directly involved in the final product. These supplies can also refer to longer-lasting items like computers, desks, office chairs and vehicles, among many others.

As I am sure you have guessed, not all purchases involve a physical item. Both businesses and consumers may spend money on a variety of professional but intangible goods. Examples of services that might be used by a company on a day to day or monthly or weekly cycle include cleaning services, security, brokers, lawyers, plumbers, recruiters and gardeners.