Durable goods, also known as hard goods or consumer durables, sell slowly and have a long shelf life. Durable goods are generally medium to high-cost, so consumers only buy them occasionally. That said, consumers still use durable goods every day. So, keep scrolling if you want to know more about the exciting durable goods financial sector. So, what is a durable good? Keep reading to find out.
KEY TAKEAWAYS:
- Durable goods are products that are expensive, long-lasting, and are used every day.
- Everything from garden tools to motorized vehicles is consumer durables.
- Experts expect durable goods to last at least three years.
What Counts as a Durable Good?
Durable goods are typically medium to high-cost, and they last three or more years. In addition, consumers don’t shop for them often due to their durability. Durable goods take up much more retail space, and they don’t typically have an expiration date. Products like cars, ovens, game consoles, and some clothing count as durable goods. While some clothing might last longer than three years, things like coats, shoes, and shirts count as nondurable goods. If you’re still not sure what counts as a consumer durable good, we’ve got you covered. And even if your cell phone may not count as a durable good, we recommend that you read about the changed law saying unlocking your phone is legal.
Types of Durable Goods
Durable goods last, on average, for a minimum of three years without the need for successive purchases. But, of course, depending on how you treat your appliances, you may have to replace a durable good sooner or later than expected. Below are examples of different types of durable goods. And in comparison, you can read here about what nondurable goods are.
Kitchen Appliances
Every appliance in your kitchen is a durable good, from the oven and refrigerator to things like an air fryer or an indoor grill. We have kitchen tools like knife sets, plates, bowls, or mixers for more durable kitchen goods.
Consumer Electronics
Unless someone handed you a printout of this article, you’re reading it on a durable good. Consumer electronics like game consoles, PC monitors, laptops, and tablets are durable goods. In addition, due to how frequently consumers are starting to upgrade their smartphones, some experts count them as a semi-durable good.
Tools
All the tools in your garage, shed, or closet are durable goods. Even products like air compressors, hydraulic lifts, and power tools count as durable goods.
Vehicles
Cars, trucks, boats, and even electric scooters count as durable goods. Vehicles typically far exceed the three-year minimum to qualify as a durable good, often lasting up to 20 or 30 years.
Lawn and Garden
Every time you’re working on your lawn or landscaping with garden equipment, chances are, you’re surrounded by consumer durables like shovels, rakes, and spades. In addition, gas or electric-powered tools like chainsaws, lawnmowers, and weed eaters count as durable goods.
Jewelry
Since diamonds supposedly last forever, it makes sense that jewelry is a durable good. Expensive necklaces and rings aren’t typically a fast-selling product, but they last for lifetimes if adequately maintained.
Toys
People might be surprised to know that toys like LEGO and action figures are durable goods. Toys are often made of metal and plastic, which tend to be long-lasting. So, while many adults might think of toys as eventually disposable products, they are actually in the durable goods industry.
Sports Equipment
Your sports equipment is supposed to last a long period of time. From your basketball hoop to the basketball itself, sporting goods are durable products. That said, sports equipment like athletic shorts and team jerseys are nondurable goods.
Nondurable Goods vs. Durable Goods
A non-durable good, also known as a fast-moving consumer good (FMCG), is a short-lasting item that is generally disposable. Nondurable goods are typically much cheaper than durable goods, and consumers need to buy FMCGs on an almost daily basis. Nondurable goods include things like food, beverages, makeup, and household cleaners.
F.A.Q.S
What is a Slow-Moving Consumer Good (SMCG)?
SMCG is another name for durable goods. In addition, SMCGs are also called consumer durables.
What is a Semi-Durable Good?
The phrase “semi-durable good” isn’t commonly used. However, other experts believe that a product that lasts more than a year but not more than three is considered semi-durable.
Who Buys Consumer Durables?
Most, if not all, consumers buy durable goods. The term “durable goods” applies to a wide range of products from cars to computers.
STAT: In the year 2000 itself, durable goods production composed approximately 60 percent of the aggregate output within the manufacturing sector in the United States. (source)
