Goods and Services

By: Ms. Steele

What are goods?

• Goods are products or things a business sells to YOU, the customer or consumer!

What are services?

• Services are activities provided for you by business people, usually for money!

All businesses provide either goods or services!

• Businesses that provide goods to you sell you things!

• Businesses that provide services to you do things for you!

A farmer…

• grows crops/food for you to eat! So…his business provides you with goods!

A teacher…

• teaches you and, hopefully, makes you smarter. So, her business provides you with the service of helping you have new or more knowledge.

A baker…

• bakes donuts and bread that he sells to you. So…his business provides goods to you!

A doctor…

• takes care of you when you are sick. So…she provides a service to you.

Some businesses are BOTH…they provide goods AND services!

A plumber…

• fixes your toilets and sinks. If he simply fixes these items, he is providing a service to you. But…if you need a whole new toilet or sink, then he is selling you a good!

A carpenter…

• builds things, like houses. He sells you things (wood, nails, etc.) AND he builds your house. SO…his business is being BOTH a provider of goods AND services!

NOW…YOU should know the difference between a good and a service!