Types of industrial products are goods, services, or solutions bought by corporations for processing or usage. The primary difference between a consumer product and an industrial product lies in the intended use. We can classify even the same product as both consumer and industrial according to the purpose of purchase. If you are buying a car for your personal use, it is a consumer product. If you purchase a vehicle for company usage, it is an industrial product.
Capital item types of industrial products
Companies use capital items to run any manufacturing business, large-scale industrial facility, or even office activities. Capital items are industrial assets that support the corporation in its production or general activities. These types of industrial products take an important place in the classification of industrial products. Due to their nature and investment costs, capital items have a substantial value to an industrial company. Installations and accessory equipment comprise this product category.
Capital types industrial products are usually purchased directly from the manufacturer
Industrial purchasers buy capital goods directly from manufacturers. Accessories, such as portable factory equipment, tools, and office equipment, have a shorter life expectancy than installations. They do not form part of the finished product, but rather aid in the manufacturing process. The sellers of auxiliary equipment rely on middlemen to sell their items, such as distributors and resellers. This is mostly due to the fact that, while purchasers are geographically separated, they are many, and the average order size is tiny.
Installations include significant investments such as factories, offices, warehouses, and fixed equipment such as elevators, generators, fire extinguisher systems. Installations are one of the most important investments made by a company. Therefore, they have an extended decision-making period before the purchase. Companies consider several factors before purchasing since they make a significant investment in installations.
Accessory equipment is manufacturing instruments (Ex: Machine tools, conveyors systems, pumps, overhead cranes), vehicles (Ex: Vehicles, trucks, engines, mobile cranes, forklift trucks), and office equipment (Ex: Computers, printers, copiers, office furniture). These types of industrial products are assets. They have a shorter life compared to installations. Still, they have a longer life than regular consumables (Ex: Paper, pen). These types of industrial products do not become a part of the finished product but only assist in the business operation.
Materials and parts
The most comprehensive types of industrial products
Goods that enter the manufacturer’s products are classified as materials and parts. Materials and parts become a part of the final product through further processing. These types of industrial products include raw materials, manufactured materials, and manufactured parts. Materials and parts are usually sold directly to industrial users. More importance is attached to price according to other determinants in the sales process of materials and parts.
Raw materials are industrial goods that will be processed to produce other products. Those are the basic products that enter the production process with little or no changes. This category includes forest products, minerals, water, ocean products, and natural resources such as agricultural products and farm products.
Any product that requires raw material processing to provide the final product is part of the manufactured material classification. Manufacturer companies process those materials into final products. The pricing of material types of industrial products depends on the processed raw material. Suppose the raw material’s quality to produce the manufactured material is high. In that case, the final product will be of premium quality, and its price will be relatively high. Examples of manufactured materials are; glass, yarn, iron, plastic, cement.
Manufactured (Component) Parts
Manufactured parts are components that do not need further processing. They become a part of the final product. Those parts can be installed directly into the products with little or no additional change. Examples of manufactured parts are; small motors, tires, ball bearings, switches, and casting.
Supplies are types of industrial products that do not enter the manufacturing process of the finished products. They support the development or production of the finished product. Supplies are short-term goods or materials required for a company’s daily operations.
Supply types of industrial products diverge into two categories
This product category includes two sub-categories: operating supplies and maintenance & repair supplies. Supplies are usually traded like consumer goods. Purchase of supplies rarely requires a lot of consideration and comparison by the buyer.
Pen and pencil, printing paper, notepads, lubricating oils, safety equipment are part of the operating supplies needed daily.
Maintenance and Repair Supplies
Paints, gloves, nails, and repair tools are forms of maintenance supplies.
An important product line in industrial product classification is the business services. Although business services do not involve the trade of a tangible good, they are labour types of industrial products.
The outsourced types of industrial products
Business services are third-party services usually provided to industrial companies. These services are generally outsourced because industrial companies don’t want to spend time or energy doing these things. Therefore, they either use business advisory services or maintenance and repair services.
Legal, consulting, advertising, and marketing companies are all service companies that provide professional services to industrial companies.
Maintenance and Repair Services
Repair supplies and repair services differ from each other. Products such as paint or nails are repair supplies. Services such as office cleaning, window repair, or computer maintenance are maintenance and repair services.
Conclusion on types of industrial products
Sales business in the industrial markets is challenging due to the complex types of industrial products. B2B sales companies usually use a procurement team that comprises competent experts for critical purchasings. The procurement team identifies, evaluates, and selects suppliers who provide the most significant value to their company. Industrial sales experts must consider industrial customers individually to respond successfully to their unique needs. Thus, you may have to develop complex strategies to meet customer needs.