Durable goods are consumer goods that have a long lifespan and don’t wear out quickly. Customers don’t purchase them often since such goods are considered expensive and people can use them for at least three years.
In this article, we’ll review the characteristics of durable goods, 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 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 that’s why many people rent them instead of purchasing;
- an increase in orders of durables signifies that the economy is getting better (consumers purchase durables when they know that the economy is improving);
- customers sometimes rely on bank loans to buy these items because of the high price;
- the process of purchasing these products usually requires careful planning.
Now that you know the features, it’s time to proceed to the types.
Types of Durable Goods
Durables can be divided into two groups: 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 customers don’t need to buy them again soon. The examples include cars, furniture, electronics, books, tables, chairs, etc.
- Business durable goods. These are goods entrepreneurs need for the correct and complete 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 essential to enable certain types of companies to operate. Commonly, firms need buses, cars, and trucks to carry out the transportation of goods necessary for production or to deliver products to customers. Besides, to control business and track its success, business owners need computers, laptops, smartphones, and tablets.
Now when you know the types, let’s make the difference between durable and nondurable goods clear.
Durable Goods vs Nondurable Goods
Durable goods are goods that are employed for a long time since they don’t wear out quickly. Goods like cars, furniture, hairdryers, tables, electronics don’t break down quickly so people don’t purchase them once a week or month. A long life cycle of these goods allows customers to use them for several years.
Owners of these products can obtain benefits not only once but during a certain period. Eventually, their advantages might reduce but people still can 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.
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 so people can pay with cash to obtain the benefits as soon as possible. Examples include perishables (meat and fish, fruits and vegetables, dairy and bakery products) and products like cosmetics, soft drinks, dish soap, laundry detergent, etc.
The difference between these types of goods is clear, so we need to move to the examples.
Examples of Durable Goods
Durables don’t necessarily should be presented only in certain industries, you can find them everywhere starting from electronics and finishing with production machines and equipment for factories. That’s why it’s essential to mention that there are different categories of durables which you might need in your everyday life and business as well.
Let’s begin with the first category — home furniture and equipment. For sure, items like air conditioners, tables, chairs, microwaves, plant pots, beds, shelves, blankets belong to this group of goods. We can also proceed to consumer electronics and products like tablets, laptops, earbuds, smartphones, etc. To conclude, you can find durable goods everywhere around you.
You now know the characteristics of durable goods, the difference between durable and nondurable goods. The examples above show that it’s important to differentiate these products since you see and use them 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: 15.04.2021