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Of course one is tangible and the other intangible. Is the way you sell them the same?
Hi Ibrahim,
Good evening. In my opinion, there is a major difference that you can see the product but you can't see the service. When you are selling a product then you can focus on the product features which can be seen or experience by testing the product. But when you are selling the service you have to highlight the features as well as success stories and complements given by other customers as it can't be seen but it can be feel. For example, I can see toothbrush as a product but I can't see SPSS (statistical tool) as it is service provided by IBM.
Major difference is one is product is tangible whereas service is intagible. For product you sell a physical thing and in service you only charge for the facility you are providing.
1. Product selling involves matching your products features and benefits to the customers needs while Service selling involved designing/ fitting features as per customers needs
2. A product is most often fixed and visible or can be demonstrated where as Services are usually concepts which need to be illustrated in multiple ways
When someone comes to your store, they decide what to buy and are able to make a selection and order the item(s). There might or might not have physical interaction with the buyer and your only concern is bringing them back for a second order. The sale is finished once the order is processed. Proof of satisfaction is immediate – good product happy customer.There is no need to qualify a prospect or worry about payments – they either have the money or they don’t. The prices of the items are what they are, the margin of profit should be known and aim is to make money(considering the value for money of the product). Customers are buying an off-the-shelf item that is mass-produced and not tailored to specific needs. WHEREAS
Services are usually sold by the person who will actually render the service. The service provider must build a personal relationship with the buyer, and must be able to connect with the client and have “good chemistry” otherwise the relationship will fail.Satisfaction is subjective – this is why service sellers must be sure and screen prospective buyers. Having to calculate the estimated time and being accurate is something that can make or break the business providing the service.Clients view the service provider as a “consultant” or expert and their image of the service provider dependent largely on how well the business person performs in the initial meeting.The customer is buying the expertise to get a service that is tailored to their needs and sometimes highly customized.
