Difference between merchandise concern and service concern business

We will discuss the difference between merchandise concern and service concern business, but first, we need to know what is merchandise concern and service concern business.

Merchandise concern:

The merchandise concern is that branch of business that deals with the purchase and selling of merchandise (products). Unlike service concern, the merchandise concern earns revenue by selling products to the customer.

Merchandise concern deals with the purchase and sale of products.  Merchandising companies buy goods from the manufacturers for resale.

ExampleCommercial importers and independent distributors in Bangladesh are merchandising concerns such as Agora one-stop mall, Lass Pharma, PQS and so on.

Service ConcernService concern deals with the purchase and sale of service

Difference between Merchandise concern and service concern business

Business is of two types- one is service enterprise and another is merchandise enterprise. Though these are tow business concerns, they have some differences in the following cases:

Topic Service Enterpriser Merchandiser
Business Pattern It is a service-oriented business. It is  a product-oriented business
Basic Revenue Service revenue is the basic revenue of service enterprise Sales revenue is the basic revenue of merchandiser.
Journal It uses only periodic  Journal  It uses both periodic and perpetual journal.
Scope It has a comparatively narrow scope of businesses. It has a comparatively wide scope of businesses.
The cost of Goods Sold It does not deal with the cost of goods sold It deals with the cost of goods sold.
Limitation It provides limited services within a limited area. It has no limitation to sell merchandises.
Examples Schools, colleges, universities, medical, clinic,  repair workshop, chartered accountants firm, law concern, transportation concern etc. Stores,  stalls, shops, companies, incorporation
Difference between Merchandise concern and service concern

Difference between Merchandise concern and service concern

 

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