Products Or Services Which One Makes More Money

[moonchild]

If you're in a business you're either on the product side or the service side.

Which means you're either selling a service or selling a product, arguments abound which one is more profitable.

I think selling products is easier and more profitable because, a product can scale and once it's out you've done most of the work, also, another point is its way easier to start a product based business than a service based.

As a product seller all you have to do to increase your revenue is to produce more, which is easier these days with the advent of machines.

A service seller on the other hand can only do one thing at a time, for example let's take a web designer for example, he can only take one client at a time so it is not scalable, you can't take in multiple clients at a time, until maybe you hire other people to help you and these can take a toll on your productivity in general.

And when it comes to profitability also, I think products have the upper hand because your profit will be based on the unit you sell multiply by the price, but if you're selling services, you're trading your time with money, what you charge per hour multiply by the hours you work.

 

[Abigael]

Personally, I think that both selling products and services can be profitable. Your argument on scalability of product selling sounds good but remember that you could concentrate on one client after another in the service business and end up selling the service at a high price.

Now since these two business types are profitable, it is upto an entrepreneur to choose one that works best for them. One that they can offer without any issue, that way, they can do their best to earn as much profits as possible.

The most important thing in business is the ability to make profits. Which includes having the resources needed, proper knowledge and understanding and the market and demand needed. These things enables you to make the profits that you deserve.

 

[General01]

In my opinion, both of them makes money sufficiently and none surpasses the other on a neutral ground.

The truth is, when we talk about making money both on products or services, several things are put into consideration. It largely depends on several external and internal factors.

These factors defines the level of profitability in each of these. what is the quality of the product or service?
Does it suit the need of the potential buyers or users of the products or service?
How is the proximity of the products or services to the potential users or buyers?
and several other things which when if it is greater for one than the other,it would ultimately reflect on the profitability of the products or services.

In essence, both are profitable and one can surpass the order depending on the nature of the environment these things are being marketed at, the potential customer's need , the nature of the products or services and a host of other factors I could not mention.

When they are placed on the same environment and having the same level of profits they would definitely exhibit the same level of profitability.

In summary, both are profitable and the profitability is guaged by some external and internal factors

 

[Chibson]

The both of them have the potential to make you a lot of money provided you do them the right way. When you're talking about services you are talking about working on different freelancing platforms or others such as teaching people on YouTube platforms.

If you are a freelancer then you stand a chance of making a lot of money because there are many people who are looking for ways of doing things, and if you can offer such services on freelancing platforms, you will definitely stand a chance of making a lot of money.

A lot of people have blogs but they actually do not know how to write great articles but if you can do that, by venturing into freelancing platforms you will definitely make a lot of money.
This is where service-based online money-making comes in.

Selling of product on the other hand is also very lucrative such as affiliate marketing or selling your own product on Amazon Kindle or a lot of others.

This type actually have the capacity to make you a lot of passive income. When you have a lot of books on Amazon Kindle, you will definitely make a lot of money doing nothing.

In summary, all of them can make you money but it depends on the one you have more knowledge of.

 

[Mika]

You can make money by selling products as well as services, however, you need traffic on your store to sell your products or services and make money. If you don't have traffic, no matter what kind of products or services you are selling (high quality, low price, etc.), you can not generate revenue. However, if you have traffic, you might want to know whether you can make more money by selling products or by selling services.
In order to sell products, you need to spend money to manufacture the product, even when you are not manufacturing the products, you need to spend money to acquire products from the distributors or suppliers. Let's say you spent $10 on a product and sell it for $15, you will earn $5 from the product.
However, if you have skills you can build a service on your own and you do not have to spend money to build this service. If you sell the service for $15, the entire $15 is yours. Let's say you spent $100 in creating the service, and you are selling it for $15. Once the service is created, you do not have to create it again and again, yet you can sell it again and again.

 

[eldavis]

The two are actually very profitable if done well, but I think while selling a product you are limited. What happens if the manufacturer increases the price of the products due to the cost of production, it means you also have to increase the price you use in selling to the final consumers. There are cases where you might not be able to actually increase the price to something reasonable, or else you would end up chasing customers away. When you have a skill or services you can offer, it means you something of value to give, people would be willing to pay for that service, you are not under any control of a manufacturer or anything.

 

[TOZZIBLINKZ]

They both categories are in deed a way to make money and they both have the ability to make tons of money for you but it's solely depends on the way you operate and control them . It also depends on the people which make up the members of the public and what kind of taste and preference they have . Having a good or commodity which you produce , market , and sell to the members of the public is said to be more profitable than rendering a service of any kind . You may be wondering why I said this . Well yes , most goods and commodities sold in supermarkets local markets grocery stores and shops are mostly consumer and essential goods which have the potential to be bought and demanded by members of the public .

On the other hand , services that may be considered as essential and demanding may include services of a barber or hairdresser , services of an electrician , services of a plumber , all the services of a tricycle or bus driver . This kind of services are under the category of essential services but still they may not be demanding almost all the time by members of the public . But goods and commodity have the potential to be sold more than 10 to 20 times in a day compared to the rendering of this essential services listed above .

 

[Sotherefore]

What I can say is that both of them are really good but it depends on your skill and also what you want . All of them has their own advantage and disadvantage.
However if you are choosing to market a product there is always a lot of disadvantage because most times you have to deliver these product to a location that is needed and might cause a lot of inconveniences . Selling a product is only limited within a location. This is only when you are selling it online but might actually be the best if you are going for offline method.

If you're selling services that will even be the most convenient because you don't really have to carry all those things along .

The only possible disadvantage is that if your interested to sell services you really have to learn and understand the type of services you have to offer to people and in most cases there is always a competition depending on the service you are interested to learn.

Working online with services will generate you a lot of money conveniently if you are really good in what you are doing because it will save you from the stress of establishing a physical shop.

 

[Bookwormlux]

Rendering services to people is one of the best ways to make money because you did not get to spend so much on any capital at all .
By services here , I am referring online services mostly but even if you consider the offline services also, theyare usually very profitable and involves not spending so much on acquiring some mulch tools or requirements like it is the case with people who are in the business of selling different products .

The only thing about them is the fact that, you just have to try as much as possible to make sure that you do some form of marketing , that would enable a lot of people know about the you been able to render such services to them .

If you do not let people know about your capabilities, it will be very difficult for them to ever get to find out at all and that is a mistake that a lot of people who have such skills do .

Selling of products is usually more stressful, and the government may even suggest you to pay taxes to them, because they think you are making good amount of money from what you're doing..

 

[Augusta]

For me people that delivers services tend to make more money. I see the technical people because they are providing services making more money. like in my country, you gain little from selling products when you add the cost of transportation, the shop rent and other expenses you would know that the expenses sometimes take a lot of the profit you make. but one rendering service can do that from the comfort of one's home. you can just have a business card that you distribute and stay in your home to be called for a job. you go and charge high for the job and money is made.