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Meaning And Features Of Fabricating Materials And Parts

Fabricating materials and parts are those which become the actual parts of finished industrial products. In comparison of raw materials, these goods are processed in some degree. Semi finished goods needs to be processed before. For example, steel is obtained from pig iron, cloth from yarn, bread from flour, etc. All such semi finished goods become parts of finished goods. On the other, ready-made machine parts are used in finished goods without changing their form. For example, zip, buttons used in clothes, chips used in computer, barrel of gun, car battery, tire etc. are the examples of fabricated goods.

Fabricated goods or parts are bought in huge volume. Customers may give order in advance for the supply of such goods for a year long or more time. Per unit price of such goods is generally low.

As customers buy large quantity of fabricating materials and parts giving purchase order in advance, producers direct sell them to users. But they are sold to small buyers through middlemen. Customers' buying decision depends on the price of the goods and services to be provided by the seller. Generally, branding is not important. However, some business firms try to familiarize brand and name of their products through advertisement. 

Features Of Fabricating Materials And Parts

1. Per Unit Price
Per unit price of fabricating materials and parts is low.

2. Life Span
The life span or durability of fabricating materials and parts depends on the final or finished goods.

3. Purchase Frequency
Fabricating materials and parts are purchased occasionally or infrequently.

4. Large Quantity
Such goods are purchased in large quantity.

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