What Is the Difference Between Products and Services?

In the business world, it is essential to understand the distinction between products and services, as they have a significant impact on a company's operations, revenue, and overall strategy. While the two terms are often used interchangeably, they represent different types of offerings that require different approaches to management and delivery. This article aims to clarify the difference between products and services, and why it is crucial for companies to have a clear understanding of both.

Before we begin, you can get started with a free two-week trial with Wrike to streamline all your professional services tasks in one platform.

Products vs. services: explained

There are a number of small nuances that separate products or services. Here’s the biggest one:

Products are generally tangible items — something that your customers can physically hold in their hands. EXAMPLE: Your company sells branded swag and merchandise to other businesses.
Services are typically intangible — something that you provide or perform for another person. EXAMPLE: Your company provides graphic design expertise to other businesses.

Admittedly, the waters can get a little murky in the goods vs. service conversation, as many services often result in some sort of tangible deliverable. The Gantt chart below is a good example of that scenario.

Still scratching your head? To add some more clarity to the product vs. service debate, let’s look at a few more notable differences between the two:

A product is more frequently a one-off purchase, while a service can be recurring
A product can be returned, while a service has to be canceled (usually with notice)
A product has many different variations, while a service is more standard and straightforward

Grasping the somewhat nuanced difference between “good” and “service” can be tricky, but it’s important for ensuring that you’re using the right messaging with your customers.

The above definitions and bullet points will help you get a better grasp on whether you offer a product or service (or both), so you can better emphasize your deliverables — and, even more importantly, your value.

Streamline your work with Wrike

Understanding the difference between products and services is vital for any business that wants to succeed. By being aware of these distinctions, companies can tailor their strategies to meet the specific needs of their customers and optimize their processes for maximum profitability.

Fortunately, Wrike offers robust solutions that can help businesses effectively manage both products and services. With powerful tools for planning, tracking, and collaboration, Wrike enables teams to streamline their workflows in one place. Our customizable dashboards and reports also provide valuable insights into project progress, enabling managers to make informed decisions and ensure teams are working at their best.

In summary, whether you're delivering products, services, or both, Wrike can help you take your projects from start to finish in record time.

Richard Blatcher

As the Senior Director for Product and Industry Solutions Marketing at Wrike, Richard manages the global go-to-market approach in strategic industries, including professional services. He has over 30 years’ experience in the industry, managing the delivery of marketing and sales enablement offerings to professional services, manufacturing, and distribution blue-chip enterprises. He previously worked at Autodesk, where he was responsible for market launches of SaaS solutions.

#goods and services #products #professional services

What Is the Difference Between Products and Services?