Capital goods are any assets that have a long-term service life and can be used in more than one business. For example, a car is a capital good because it can be used in more than one industry, such as transportation and manufacturing. In this article, we will explore examples of capital goods and how they are different from fixed assets.
Capital goods are divided into three categories: durable goods, nondurable goods, and services. This article highlights some capital goods examples that you may find useful while writing your business plan. These examples will help you promote your business through detailed analysis of the business model and market potential.
11 Examples Of Capital Goods
Durable goods are 50% of your assets. These goods are expected to last more than one year. Because these goods require expensive equipment to produce, they are more expensive than other products.
I will give you some examples of capital goods in different categories :
- Machines like coffe machine, tire building machine,
- Tools & Equipments like dryers,cutting tools,
- Assembly line equipment used to manufacture cars
- Vehicles like excavator, forklift, der molen..
- Computers used in a factory
- musical instruments played by musicians
- Tools like hair clippers used by hairstylists,paint brushes used by painters
- Software used in production process
Services are intangible goods that are not considered to be a tangible product. These goods are not manufactured and are provided by service providers. Due to the intangible nature of services, their demand is expected to grow in the future. Thus, services constitute 15% of the US market. You may promote your business by targeting the services market by determining your customer base and product specifications. Through proper marketing, you can increase demand for your product and increase profitability.
Capital goods are those products that are essential to an organization’s growth, have high demand potential, and low risk. If you are planning a business that caters to the capital goods market, then you will need to examine the market potential, profitability, and customer base. By understanding the characteristics of each type of goods, you can promote yours and increase profits. Eventually, you can also diversify your business into other industries, such as durable goods, nondurable goods, and services. These capital goods examples can be a helpful guide while writing your business plan.