Main difference between manufacturing business and service business can be discussed as follows:
1. Nature Of Goods
Manufacturing Business: Products are tangible in nature. They can be demonstrated, seen and touched by customers. Physical goods like computer, books, motorbike etc. are the examples of manufacturer's products.
Service Business: Services are intangible . Clients cannot see or touch. Banking, training, consultancy etc. are examples of services.
2. Stock
Manufacturing Business: Manufacturer's products can be stored for future use. They hold inventory according to the demand forecast.
Service Business: Service cannot be hold or stocked for future purpose.
3. Ownership
Manufacturing Business: Ownership is transferred after purchase or sale of goods.
Service Business: Ownership of service is not transferred permanently to the clients.
4. Production
Manufacturing Business: Manufacturers first produce products and then supply in the market as per demand.
Service Business: Service is created or produced when customers required.
5. Transportation
Manufacturing Business: Manufacturer's products can be transported from one place to another.
Service Business: It cannot be transported.
Manufacturing Business: Direct contact is not necessary between manufacturing company and final customers.
Manufacturing Business: Transaction of goods is performed through buying and selling or transferring the ownership of goods.
Manufacturing Business: Manufacturing firms need proper physical location for production and storing goods.
6. Contact
Manufacturing Business: Direct contact is not necessary between manufacturing company and final customers.
Service Business: Direct contact is necessary between service providing company and client.
7. Transaction
Manufacturing Business: Transaction of goods is performed through buying and selling or transferring the ownership of goods.
Service Business: It is performed through acts and interactions between service provider and client.
8. Location
Manufacturing Business: Manufacturing firms need proper physical location for production and storing goods.
Service Business: They don't need a fix location. Service can be created and delivered from any location.
