Durable goods are consumer goods that have a long lifespan and don’t wear out quickly. Customers don’t purchase them often since they are considered expensive, and people can use them for at least three years.
In this article, we’ll review the characteristics of durable goods and their types, make the difference between durable and nondurable goods clear, and see various examples.
Characteristics of Durable Goods
Durable goods (also called durables) can be used for a long time, and customers don’t have to purchase them often. In general, if employed correctly for either individual or business purposes, they can serve their owner for years. This type of goods includes cars, appliances, office furniture, garden equipment, electronics, motorcycles, jewelry, and more. It’s essential to know how exactly durables differ from other goods, so let’s review their characteristics:
- such goods have a long life cycle (more than three years);
- they don’t wear out or break down quickly, so people don’t have to purchase them frequently;
- they can be used many times;
- these goods can be expensive, and that’s why many people rent them instead of purchasing them;
- an increase in orders of durables signifies that the economy is getting better (i.e., consumers purchase durables when they know that the economy is improving);
- customers sometimes rely on bank loans to buy these items because of their high price;
- the process of purchasing these products usually requires careful planning.
Now that you know their features, it’s time to proceed to the types.
Types of Durable Goods
Durables can be divided into two groups that include consumer durable goods and business durable goods.
- Consumer durable goods. This group refers to goods bought by individuals or households with the hope that these products will serve them for years so that they don’t need to buy them again soon. Examples include cars, furniture, electronics, books, tables, chairs, etc.
- Business durable goods. These are the goods that entrepreneurs need for the proper and successful functioning of their firms. Machinery and equipment are necessary to start specific types of businesses. Engines, metalworking machinery, and electrical transmission apparatus belong to industrial equipment that enables certain types of companies to operate. Commonly, firms need buses, cars, and trucks to transport goods necessary for production or to deliver products to their customers. Besides, business owners often need computers, laptops, smartphones, and tablets to control their business and track its success.
Now when you know the types, let’s make the difference between durable and nondurable goods clear.
Durable Goods vs. Nondurable Goods
Nondurable goods are goods that have a short lifespan and are usually consumed in one use. After a short period of time, these goods must be bought again in successive purchases. Customers buy nondurable goods regularly. They are cheap, and people can pay for them with cash to obtain the benefits as soon as possible. Examples include perishables (meat and fish, fruits and vegetables, dairy and bakery products) and other products like cosmetics, soft drinks, dish soap, laundry detergent, etc.
In contrast to nondurables, owners of durable products can obtain their benefits not only once but during a certain period. Eventually, their advantages might reduce, but people can still use them until these durables break down. Let’s take automobiles, for example. People use them for years, although their speed and convenience might decrease over time.
Now that the difference between these types of goods is clear, we can move on to the examples.
Examples of Durable Goods
Durables are not presented only in specific industries, but you can find them everywhere, starting with electronics and finishing with factory production machines and equipment. That’s why it’s essential to mention that there are different categories of durables that you might need in your everyday life and business practices.
Let’s begin with the first category — home furniture and equipment. For sure, items like air conditioners, tables, chairs, microwaves, plant pots, beds, shelves, or blankets belong to this group of goods. We can also proceed to consumer electronics and products like tablets, laptops, earbuds, or smartphones. Long story short, you can find durable goods everywhere around you.
Now you know the characteristics of durable goods and the difference between durable and nondurable goods. The examples above show that it’s essential to differentiate these products since you use them differently in your daily routine.
- This article defines the term and covers the characteristics.
- This article covers the types of durable goods.
- In this article, readers can find information about the importance of durable goods, their characteristics and check out the examples.
Last Updated: 12.07.2022