moonchild
VIP Contributor
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.
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.