The pricing of services versus goods

Pricing for services often reflects factors like the provider’s expertise, time spent, and the quality delivered, making it more variable. Goods, on the other hand, are tangible products with costs tied to manufacturing, materials, and distribution, allowing for more uniform pricing. While goods can be mass-produced to achieve economies of scale, services are typically customized and rely on the provider’s skill, leading to different pricing strategies. Essentially, service prices are often based on value and effort, whereas goods prices are influenced by production costs and market factors.