What Do You Know About The Industrial Goods?

Industrial goods
Industrial goods are those which are used in the production of consumer or other types of goods for business use. The basic characteristics of industrial goods are:
1- These have relatively high cost.
2- These are more complex and technical in nature.
3- The buyers of various types of industrial goods are better informed about the prices and availability of the goods and the market for many of the industrial goods in narrow.
4- The demand for industrial goods is derived.
5- The buyers are rational in purchasing the industrial goods and are not led by emotional motives.

6- Reciprocity of orders between buyers and sellers is a common practice in industrial market. A steel producer buying chemicals from the chemical manufacturer that buys steel from him.
7- The demand for industrial goods is very sensitive to the changing business conditions. When the business slows down, the demand for industrial goods drops down.
8- Industrial goods are generally sold directly by the producer to the purchaser. In case of consumer goods there is a long chain of middleman.

The industrial goods can be classified as;
a) raw materials
b) semi- manufactured goods
c) parts
d) machinery and equipment
e) supplies
f) service