Notices
Results 1 to 7 of 7

Thread: Products as services

  1. #1 Products as services 
    Time Lord
    Join Date
    Apr 2008
    Posts
    5,305
    I've heard mention of an economic trend wherein products become services. I guess an old example is consumers renting the actual telephone, and phone company periodically repairing or upgrading the device itself. Modern examples: most software and operating systems, patented GM crops.

    Why does this occur? Is it more common now?


    A pong by any other name is still a pong. -williampinn
    Reply With Quote  
     

  2.  
     

  3. #2 Re: Products as services 
    Forum Freshman hero_hont's Avatar
    Join Date
    Aug 2010
    Location
    sfsgfg
    Posts
    5
    Quote Originally Posted by Pong
    I've heard mention of an economic trend wherein products become services. I guess an old example is consumers renting the actual telephone, and phone company periodically repairing or upgrading the device itself. Modern examples: most software and operating systems, patented GM crops.

    Why does this occur? Is it more common now?
    hih, I thinks you.
    But, most software and systems, at company have got a the designer write code.
    They have worked very wonderful.We can learn it.

    -------------------
    Vietnam Travel, Vietnam tours-Vietnam beaches- Saigon hotels & restaurants


    Reply With Quote  
     

  4. #3  
    Time Lord
    Join Date
    Mar 2007
    Posts
    8,046
    I think it happens most often, as you mention: when the product requires continual services. Software has to be upgraded and debugged. Phone lines have to be maintained.

    I don't know. A lot of people like to lease cars instead of buy them. Maybe it's because it saves you from having to assume all the risk when you buy something, which is nice as products become increasingly complicated and increasingly prone to failure. I know I breathe a sigh of relief every time I think my laptop is about to have a problem and doesn't. The warranty is up, and I don't want to suddenly be out ~900 bucks just cause of bad luck.
    Reply With Quote  
     

  5. #4  
    Universal Mind John Galt's Avatar
    Join Date
    Jul 2005
    Posts
    14,169
    If you sell a product you get income in one hit.

    If you sell a service you generally get repeated income.

    Service has more value added than products alone.
    Reply With Quote  
     

  6. #5  
    Forum Freshman
    Join Date
    Aug 2010
    Posts
    22
    @ Ophiolite

    I would disagree with that. You seem to inconsistently define the time frame in which you sell a product and a service. A one off sale of a telephone could in theory generate as much income as a one off sale of telephone repair services if your phone broke down and you decided to call a private company to repair it for you.

    I would instead argue that sale of a product involves exchange of property rights, whereas sale of services do not.

    X
    Reply With Quote  
     

  7. #6  
    Time Lord
    Join Date
    Mar 2007
    Posts
    8,046
    This is kind of hard to define, because the creation of a product is a service. I think companies try for repeat sales whenever or however they can get them. If auto-mobile manufacture were a monopoly, they'd probably design their cars to wear out in as short a duration as possible in order to force us to buy new ones again.

    So.... if you see a trend toward forcing people to keep re-buying, I'd say that indicates an increase in monopolization, or oligopolization.
    Reply With Quote  
     

  8. #7  
    Universal Mind John Galt's Avatar
    Join Date
    Jul 2005
    Posts
    14,169
    Quote Originally Posted by evilwill32
    @ Ophiolite

    I would disagree with that. You seem to inconsistently define the time frame in which you sell a product and a service.
    Not so. I don't define the time frame at all, so I can hardly define it inconsistently. Service sales offer the possibility of repeat sales, over an extended period of time.


    Quote Originally Posted by evilwill32
    A one off sale of a telephone could in theory generate as much income as a one off sale of telephone repair services if your phone broke down and you decided to call a private company to repair it for you.
    So?
    I am addressing the situation, proposed by the OP, that products - in this case the telephone - are packaged with services - in this case repair and maintenance - so that the gross and net incomes are greater.

    Quote Originally Posted by evilwill32
    I would instead argue that sale of a product involves exchange of property rights, whereas sale of services do not.
    No one is disagreeing. So what?
    Reply With Quote  
     

Bookmarks
Bookmarks
Posting Permissions
  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •