Nondurable Good

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Definition of a Nondurable Good:

Nondurable goods are goods that are expected to last less than three years. 

Detailed Explanation:

Goods are either durable or nondurable. Nondurable goods last less than three years and fall into three categories. Perishable goods must be consumed shortly after they are purchased to avoid spoilage. Perishable goods include milk, fruits, vegetables, and meats. Most nondurable goods do not spoil but are consumed over a short period. Soap, laundry detergent, deodorant, and gasoline fall in this category. A third variety of nondurable goods include items that are used once and then disposed of. Disposable diapers and paper plates are in this category. Clothing is normally included in nondurable goods, even though clothing can last more than three years.

Durable goods are purchased infrequently because they are expected to last for three or more years. Durable goods are separated into two categories: consumer and producer durable goods. Examples of consumer durable goods include home appliances, automobiles, boats, furniture, sporting goods, and jewelry. Producer durable goods include machinery and equipment that are used to produce goods and services. 

Nondurable goods are purchased repeatedly. Businesses selling nondurable goods depend upon creating repeat customers by building brand loyalty. Companies selling nondurable goods normally have large advertising budgets and compete vigorously for shelf space in stores. An automobile is a durable good, but it uses a nondurable good, gasoline, to power it.

Approximately ten percent of household expenditures in the United States are for durable goods, 30 percent for nondurable goods, and a whopping 60 percent for services. 

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