Contract goods

Contract goods (opposite: exchange goods) are products that are created according to the special wishes and specifications of individual customers (product individualization). Examples of this are complex large-scale systems, components for end products (OEM businesses) and specialty goods (consumer goods). Such products are usually sold by the manufacturer directly to the end customer or user.

Advantages / opportunities:

  • Satisfied customers through tailor-made problem solutions
  • Relatively high prices can be enforced due to the strong preferences of the consumers
  • Difficult to replace by competing products due to their high specificity

Disadvantages / risks:

  • Relatively high costs because mass production, mass communication and mass distribution are not possible
  • Low sales potential
Was the explanation to "Contract goods"Helpful? Rate now:

Further explanations for the first letter "K"