Goods or products are the foundation or cornerstone of any economy. The supply and demand of certain goods can indicate how healthy or poor a country’s economy is. When it comes to economics, consumer items are separated into two categories which are durable goods and non-durable goods.
If you’re an entrepreneur or you’re thinking about starting a business but aren’t sure if selling non-durable products can bring in customers or what the impact of non-durable products on the economy is, then read further to find the answer.
- What is Consumer Non-Durable Goods?
- Is Selling Non-Durable Products Good for a Company?
- The Downside to Selling Non-Durable Goods
- What are Consumer Durables?
- How Important are Nondurable Goods to the Economy?
- How to Market Consumer Non-Durable Goods?
What is Consumer Non-Durable Goods?
Non-durable goods or consumable goods are any consumer goods that are consumed or used over a short period of time. Since these are products that can be consumed in one use or over a span of a few years, consumers must purchase them again.
Here are some examples of nondurable goods:
- Laundry detergent
- Dish soap
- Paper products
- Light fixtures or light bulbs
Nondurable goods are the counterpart of durable goods, which are goods that can be utilized over long periods of time. Duration can be over three years.
Is Selling Non-Durable Products Good for a Company?
Many companies rely on selling non-durables or consumable products to generate revenue. Although consumable products may not last as long as durable goods, they play an important role in the economy and there are several benefits to selling non-durable goods.
First, consumable products have a built-in customer base. People will always need to buy food, drinks, and personal care items, so there is a steady demand for these products.
Second, consumable products usually have high margins. This means that companies can make more profit on each unit sold.
Third, consumable products often have repeat customers. Once someone finds a brand of consumable product they like, they are likely to stick with that brand and continue buying it in the future.
So from a business perspective, selling non-durable goods is a good thing as it can generate repeat customers.
Let’s give an example. Let’s say you’re the owner of a soda company. You know that customers who buy your soda will eventually finish their drink and will need to buy another batch. So you know, that once a customer falls in love with your product, that they will make repeat purchases.
The challenge here is that you need to make sure that you have a competitive product and that you know how to build customer loyalty. This way, you’re sure that they will come back to make another purchase from your company, not your competition.
The Downside to Selling Non-Durable Goods
There are also some potential drawbacks to selling consumable products. As a business owner, you need to know the disadvantages of selling any product that you plan to offer the public. This will enable you to minimize the risks and form a plan to reduce or eliminate these potential drawbacks.
When it comes to selling non-durable goods, there are a few things to keep in mind.
First, these products tend to have a shorter shelf life than other types of goods. This means that businesses need to continuously produce and stock new supplies of consumable products.
Next, you have to be always conscious of the trends. Consumable products can also be subject to changes in consumer tastes and preferences. If consumers stop using a particular product, it can be difficult for businesses to adjust and continue selling that product.
To combat this, you have to always do market research and product development to make sure that you’re always on top of the game.
Another issue that may arise is something that you’ve already seen earlier which is building customer loyalty. You have to form a solid marketing strategy that will enable you to attract customers, retain them, and turn them into loyal advocates who will spread the word about your brand.
Once you have figured out an effective system where you can grow loyal customers, then you can benefit from the repeat purchases of your products from each of your customers.
Finally, consumable products can also generate a lot of waste. Businesses need to find ways to dispose of unused or unwanted products in an environmentally responsible manner.
Despite these challenges, selling non-durable goods can be a highly profitable business model. With the right product and marketing strategy, you can build a successful business around consumable products.
What are Consumer Durables?
Consumer durables or durable goods are consumer products that have a long life span, usually three years or more. They are contrasted with nondurable goods, which have a shorter life span and are consumed much more rapidly.
In general, consumer durables are a good investment because they are likely to hold their value over time and will often appreciate in value. This makes them a good choice for people who are looking to invest their money in a way that will grow over time.
Additionally, because durable goods can be used as collateral, they can provide a way for people to get access to capital that they might not otherwise have.
Some examples of durable goods are automobiles, furniture, major appliances, and electronics.
People use these items on a regular basis and these products are built to last for several years.
When it comes to its impact on the economy, a good example would be to take a look at automobile sales. When people buy new cars, they are also likely to buy other things like insurance, maintenance services and fuel, which is non-durable product. This can lead to not only an increase in economic activity but also open more jobs for people.
How Important are Nondurable Goods to the Economy?
While non-durable goods may not last as long as durable goods, they still play an important role in the economy. As mentioned above, non-durable goods can help boost economic growth by providing consumers with the items they need to live and work. Additionally, nondurable goods can create jobs in the manufacturing and retail sectors.
Importance of non-durable goods in an economy:
- A significant portion of GDP. Non-durable goods make up a significant portion of GDP and are important for stimulating economic growth. They contribute to the country’s gross domestic product in the categories of exports, personal consumption, and private or government purchases.
- Stable part of an economy. Non-durable goods represent necessary goods that consumers must buy no matter what state the economy is in.
- Non-durable goods are not considered an economic indicator. Since people will buy consumable goods no matter what state the economy is in, they are not reflective of the population change or economic growth.
Consumer behavior remains stable and consistent when it comes to consumable products. They are generally safer than durable goods. For example, in times of recession, people will usually prioritize purchasing non-durable products like groceries over non-durable products. This can sometimes lead to the prices of non-durable goods going down.
How to Market Consumer Non-Durable Goods?
There are a variety of ways to market consumable products. Some common methods include:
- Using television commercials
- Print ads in magazines or newspapers
- Word of mouth
- Internet marketing
Television commercials or advertisements are a great way to reach a large audience and generate awareness for a product. However, they can be expensive to produce and air.
Print ads are another option for marketing consumable products. They can be less expensive than television commercials but still, reach a large audience.
Billboards are a great way to generate awareness for a product, but they can be expensive to produce and maintain.
Word of mouth
Word of mouth is always a great way to generate interest in a product. If people are talking about a product, they are more likely to try it.
Internet marketing is an excellent way to reach a large audience considering there are now more than 5 billion internet users worldwide. This is a strategic way to generate awareness for a product. It’s also less expensive than television commercials or print ads, and it can be targeted to specific audiences.
Internet marketing includes SEO, social media marketing, paid media marketing and affiliate marketing.