Business Products

Posted by Telise Kelly in Sep, 2014

What are business products?

Business products are goods and services sold to other businesses unlike retail products, which are sold to consumers.

What are business products like?

Business products are generally the raw materials used in the manufacture and or construction of a final product.  For instance, high silica sand is a raw business product used in the manufacture of glass.  Glass then being the consumer product.

What is the purpose of a business product?

Business products are made to sell to other businesses. In most cases these products will be cheaper being sold at a wholesale price rather then the retail price sold to consumers.

What are the different types of business products?

Business products can be any product used in manufacturing, such as quarried items such as sand, bauxite, iron, can be wood, crude oil, machinery, etc.

What’s involved with determining business products?

A manufacturer will require a certain raw or business product to produce their product of service.  The will search our suppliers and determine how best to source the items they require.

Where does determining the business products needed fit into the sales process of a business?

Determining the business products needed for a new business would happen after the business plan has been drawn up and approved as well as legal advice and getting the general go ahead for the business. This stage is crucial to ensure the business has the correct items to run successfully and smoothly. Without the correct tools when starting a new business the new customers may not come back due to lack of materials or poor service from the wrong tools.

How does determining business products impact on different areas of the business?

If a business does not have the correct products when they begin the business may struggle to carry out operations properly. For example, if you open up a sandwich shop and most of your sandwiches have a slice of tomato on them then a quick slicing machine would be helpful rather then slicing each tomato. Without this machine customers may have to wait longer which could make them not want to come back due to slow service. The proper products are therefore needed to help the success of the business.

What terms are used when determining business products?

Raw material – products obtained for production of higher order products that are key ingredients such as fishing, mining and harvesting.
Equipment – products used for production of other products or operations activities.
Basic components – products often built with processed or raw material that are used within more advanced components.

Where can I find more information about determining business products?
http://en.wikipedia.org/wiki/Product_(business)
https://www.boundless.com/marketing/products/types-of-products/business-products/
https://www.commbank.com.au/business/products.html

Who would most benefit from this knowledge?

– The learner level for this article would be a person with no experience in this area.
– This article is suited to the senior management job level.
– Under various laws all jurisdiction types have influence over business products.
– No cultural influences impact business products.
– Climate does not impact on business products.
– All size organisations and legal structures would find this information relevant, which includes startups, small to medium enterprises, corporations, non-profit organisations and government departments/government owned entities.
– This knowledge is relevant to all industries.