What are Industrial Goods? 

Industrial goods are those products or the demands of buyers or consumers that necessarily help in the production of a particular manufacturing industry. It is classified into two groups which are production and support groups. The former is necessarily used to produce a final consumer good or what we call a product while the latter helps in the processes of production involved to manufacture a consumer goods, for instance, machineries and equipment. Meaning, industrial goods are purchased for business use.

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Few subcategories further group the kind of industrial we have for today. For instance, installations are those industrial goods that include types of machinery, accessories are those like power generators and things like that. We also have raw materials or those materials that are going to be used to produce a consumer goods such as timber or cotton. Then, we also have manufactured parts such as a radiator, a battery, and others that are needed to build a car. Lastly, we have the supplies and consumables that are readily used by consumers such as lubricants, oils among others.

Characteristics of Industrial Goods

1. Complex

Most industrial goods are almost always complicated because most of these goods are very much technical in nature. For instance, a layman without the necessary skills and experience is not capable of putting value in a particular good. That is, one should have the knowledge for technicalities in order to assess and give value to these things.

2. Demand is derived

The production of industrial goods are ‘derived’ or necessarily contingent to the demand of that particular consumer goods it helps to produce. For instance, the demand for a cotton or a timber will necessarily be determined by the demand for cotton products or those products made out of lumber.

3. Purchasing is a group process

Buying a consumer goods or agricultural goods could be done by an individual. For instance, your mom buying groceries herself at the supermarket, purchasing time at a photo booth. However, when we say purchasing industrial goods, it almost always involves a team or a group which consists of financial experts, engineers, and other related professions.

4. Expensive

Industrial goods are very much highly priced in contrast with agricultural or consumer goods. Meaning, when buying a particular industrial goods, it almost always involves a huge amount of money. This is because manufacturing these things is not an easy task and the technology behind the process of producing these goods are complex and thus, also expensive.

5. Reputation of seller

Most consumer and agricultural goods sellers are not necessarily tested in terms of reputation especially if they sell goods that aren’t necessarily ‘durable’ goods. For instance, agricultural products. However, in the case of industrial goods, the reputation of the seller is essential especially that most buyers prefer to purchase from reputed stores rather than in a relatively new and unknown market.

Because industrial goods are used to produce the consumer goods that we enjoy right on our plate, or just right in our garage, this business is particularly important not only to our lives but on the economy of a nation in general. This is precisely the reason why, as much as possible, we have to know a thing or two in this particular area in order to help in the proliferation of these kinds of industries.

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