Which Costa Rican Car Company Is Best?

Renting a Car in Costa Rica? Which company should you choose?

There are so many rent-a-car companies to choose from in Costa Rica – from the large international firms to the smaller national agencies. Reviews on the internet invariably either damn or sing the praises of each company to the extent of being almost useless. So how do you choose the best place to hire a car for your trip?

Many tourists that rent vehicles in Costa Rica complain that they have been ripped off when they realize the extra cost of insurance they are obliged to pay or that they have been charged a dollar rate that reflected the currency rate and not the quoted rate. Understanding the insurance laws and charges that bind the Costa Rican car rental companies may help you to ask the right questions when you are reserving your vehicle and avoid a nasty shock upon arrival. If a company is not upfront about its additional costs; you may wish to consider whether it is a company that you choose to take your business to.

I have worked within the tourism industry in Costa Rica for the last six years and have lived here since 2000. I am familiar with the feelings that many visitors to the country experience when dealing with rent-a-car companies. These can range from delight to discomfort to outright fury; sometimes due to the inefficiency, or even dishonesty of the rental agency, but also due to the renter’s lack of understanding of the legally binding restrictions within which Costa Rican car rental firms must work. I hope that while this article won’t guarantee you trouble-free vehicle rental; it might make you a more knowledgeable customer.

Insurance needs, additional costs in rental and surcharges are considered in more detail below:

Insurance:

Basic insurance is mandatory. Costa Rican law is very clear on this and your rental car company cannot allow you to leave with their car without having agreed to pay it. Expect to pay somewhere between $9 and $20 per day on top of your car rental rate. An honest, car rental agency will make this very clear in their pricing. If it is not clear whether the insurance is included in the rental cost; ask for clarification and be aware of other potentially unstated costs.

Check whether your insurance policy covers you to drive in Costa Rica. Some policies include Collision Damage Waivers and will cover Central America. If you are covered, bring proof (in writing) for your vehicle rental company. If not, consider whether you would be safer to pay the extra cost of this additional coverage. This part is not mandatory.

Zero liability is offered by rent-a-car companies. You may wish to consider whether you would feel more at ease knowing that you would not be liable for any costs should something occur while you are renting their vehicle. You are not obliged to buy this supplemental insurance.

Additional Fees:

Many car rental companies will charge additional fees for a child/baby seat, an additional driver, luggage racks or cooler. You can expect to pay up to $8 daily for each of these extras. Although by shopping around, you can find companies that will offer some or all for a lower price, or even free.

With Costa Rican roads being notoriously poorly signposted and the whole country operating on an address system based on landmarks rather than road names or numbers, a GPS is essential for many car renters. You will usually pay between $8 and $15 a day for this service. It is fairly common practice to allow renters to use one of their cell phones for the duration, but if you wish to use it for your own calls; you’ll obviously be charged.

Surcharges:

Some rental car companies incorporate taxes and additional fees into their rental cost; others don’t. Make sure you know what you will be charged for on top of your rental fee. Airport fees can be charged at 13% of your rental cost which is a sizable fee to pay in addition to an agreed rental charge. You may also be charged a license plate charge, environmental fee and/or any other charge that the rental car company has to meet (or pocket).

Prices for the rental will be given in US dollars, but as the local currency is colones, you should understand that exchange rates change daily and what you are charged on your credit card on the day of payment may vary slightly from what you were quoted.

Criteria for Rating Car Rental Companies:

For this article, three (3) main points were considered for each company:

1) Value: Is the rental rate competitive?

2) Efficiency: How fast do they respond to the needs of the client?

3) Transparency: How clear is the information provided by the company?

You may have your own criteria, but based on complaints from previous customers on community websites like Trip Advisor, Lonely Planet, etc., the requirements of those clients seemed mainly based around these three basic areas.

The companies surveyed below are a mix of local and international firms. Each company was researched based on a week’s rental of a Daihutsu Bego with mandatory insurance.

Dollar Rent-A-Car:

Value

- $300+ USD.

- Extras are at average prices.

Efficiency

- They have 3 offices nationwide.

- Email inquiry returned within 24 hours.

Transparency

- The prices for rental vehicles are displayed on site but a side box contains a ‘Daily RA’ with dollar amount. This is the mandatory insurance.

- Reservation price is listed as ‘Base rate’ and doesn’t include insurance.

- Dollar has received mixed reviews in sites such as Trip Advisor.

- A toll-free number is available.

Vamos Rent-A-Car:

Value

- $300+ USD.

- Only GPS and cell phone use are charged. All other extras such as child seats are free.

Efficiency

- They have 3 offices nationwide.

- Email inquiry returned within an hour.

Transparency

- The website clearly states prices and insurance.

- Toll-free number and live chat are provided.

Wild Rider:

Value

- $300+ USD.

- Additional driver is free.

Efficiency

- Email inquiry returned within 2 hours.

Transparency

- Prices are displayed very clearly onsite and include insurance.

- The company has almost 100% positive reviews, but with a fleet of only 30 vehicles and one central office; it may be difficult to help clients who are in difficulty outside the capital.

- They cannot provide a vehicle for the Liberia airport, just San Jose.

Budget:

Value

- $400+ USD.

- Extra charges for baby seat, additional driver etc.

Efficiency

- The company has 9 offices nationwide.

Transparency

- No prices displayed with vehicles information.

- Budget has received mixed reviews.

- Surprisingly for a large company, it provides no live chat or toll-free number for clients in the USA.

Service Car Rental:

Value

- $400+ USD including mandatory insurance and taxes.

- Extras such as additional driver and child seat are charged, but at cheaper rates than most companies.

Efficiency

- The company has 5 offices nationwide.

- Email inquiry returned within an hour.

Transparency

- Their rates are clearly shown on site.

- Service has received mainly positive reviews.

National Car Rental:

Value

- $400+ USD.

- Extras are priced a little above average.

Efficiency

- They have 23 office locations, although some are Alamo.

Transparency

- Price estimates online do not include insurance or additional charges; however, they are displayed in the full quotation.

- They have received mixed reviews.

- Both live chat and a toll-free number are provided.

Economy Rent-A-Car:

Value

- $200+ USD, but it seems possible to reserve a vehicle without inclusion of any insurance.

- Extras are average in price.

Efficiency

- They have 12 offices nationwide.

- Email inquiry returned within an hour, but email inquiring about insurance was not returned.

Transparency

- Website does not make mandatory insurance clear.

- Economy has numerous negative reviews.

- Both live chat and toll-free number are provided.

Hertz Costa Rica:

Value

- $400+ USD, but actual rental price is not made clear.

- Extras are pricey.

Efficiency

- 6 offices nationwide.

- No contact email.

- Telephone numbers are available for different offices around the country.

Transparency

- Very confusing quotation system. Two rates are offered for a vehicle and chosen dates. The cheaper option does not include mandatory insurance and it is in very small print under the final quotation price. The more expensive option includes non-mandatory insurance along with mandatory.

- Mixed reviews.

- Both live chat and toll-free number are provided.

Adobe Rent-A-Car:

Value

- $400+ USD.

- Extras are at low prices.

Efficiency

- The company has 9 offices nationwide.

Transparency

- Online estimate includes insurance.

- Adobe has received mixed reviews.

- A toll-free number is provided.

Tricolor Car Rental:

Value

- $300+ USD.

- No charge for pick-up or airport fees.

- Extras aren’t listed or provided in quotation email, although cell phone price is given.

Efficiency

- 3 offices nationwide.

- Email returned within 2 hours.

Transparency

- Website is not very user friendly.

- Reviews are mixed.

- Toll-free number is provided.

Finalizing the Three Criteria:

Economy, at first, appear to be the cheapest company to rent from, but unfortunately this is due to their failure to declare all costs incurred by the renter, rather than a genuine, good deal. For real value, Dollar, Vamos, Wild Rider and Tricolor come out on top for competitive pricing for the basic rental fee, plus mandatory insurance. Vamos is noticed for being the only firm that does not charge for extras such as a child seat or surcharges. Adobe and Service have low cost extras, whereas Hertz has the most expensive rates for extras. Wild Rider does not charge for an additional driver.

Only Economy failed to respond to email inquiry. All other companies responded quickly and with clear answers to inquiries. Wild Rider, as the smallest firm, cannot offer nationwide service, but reviews suggest that they have met customer needs to date. All other companies can offer services from offices in locations outside of the capital city — increasing their ability to serve clients effectively.

Adobe, Wild Rider, Vamos and Service have websites that clearly show rental prices and insurance. Economy and Hertz somehow seems to be deliberately misleading on their websites. The other companies’ websites provide the required information – even if it can take some time in hunting it down.

Conclusion:

This brief survey would suggest that Vamos, Service, Tricolor and Wild Rider would be the best companies to begin your rental research, whereas Economy would be best to avoid.

Now you know as much as I do! The information here is supposed to be your starting point and not the end point. Hopefully, you will know the right questions to ask when you’re looking for a rental vehicle to ensure that your dream vacation begins smoothly without any nasty shocks, like hefty extra charges when you land. Enjoy the drive!

Living in the Philippines – Best "Passive" Businesses to Start

For those OFW’s and foreigners wishing to start a business, but not wishing to involve themselves with the stress of a business involving day-to-day operations, employees, landlords, inventory, and so forth, there are several available opportunities for foreigners living in the Philippines. Buy fixer upper properties, improve them, then rent or sell them.

1. Buy Fixer Upper Properties, Improve Them, Then Rent or Sell Them. This is a great business for those of you who have experience in your home country in buying, fixing up and renting or selling properties. Over the past 10 years, a lot of people got involved in this kind of business in their homeland.

With the overall economic problems in the world the past couple of years, the Philippines has not been immune, and there are a lot of properties in a state of disrepair, as well as lot of distressed and foreclosed properties.

2. Build An Apartelle. An Apartelle is an apartment building where all but one of the units are rented out long term, and you are left to operate on a nightly or weekly basis, like a hotel – hence the combined name of apartelle. These are common in the Philippines.

This business will require a heavier capital investment, yet with the right property and by focusing in the more rural areas or smaller cities, you can construct a small 4 unit apartment building for Peso 3,000,000 – not counting cost of the land.

You would want to rent out 3 units on a long term rental basis, and keep one for short term rentals – for the many traveling salesmen that frequent the countryside. They like booking into such short term apartelle units rather than the much more expensive hotels in the area.

3. Condotels. I have not given this business my “thumbs up” in all instances. Condotels have been heavily touted and promoted the past several years and there have been many, many new condominiums built in Manila, and now even in Cebu and starting in Davao.

The problem is that although the developers offer great down payment terms (usually around 30% down financed over 3 years) and in some cases carry back the mortgage and finance for perhaps 10 years, the interest rates are incredibly high, and the split of rentals with the management team runs around 50%/50%. There is also always a nominal monthly maintenance fee.

What looks like “cheap” entry point and cash flow out each month, in many cases simply becomes a bet on long term property appreciation – finding someone willing to pay you more for it than you paid for it.

This is because with all the inventory on hand, there is a surplus of condos which have been into hotel type rental pools, but not enough visitors to rent them all.

Consequently, what an investor thought would be a good positive cash cow, turns out to be a continuous negative cash flow – not what a new retiree to the Philippines is looking for to supplement his pension or annuity! This type investment will only drain you pension.

However, having written all this, I HAVE FOUND the past several month two exceptional condotel investments which DO meet my criteria of creating good ongoing rental income.

4. Farming. The likely cessation of the Agrarian Land Reform Program (CARP) will give the rural sector renewed confidence to invest in agricultural production capacity. CARP has held back investment in both production capacity as well as farm acquisition. An end to CARP will mean higher land prices since land will be valued for its higher income producing potential.

However, higher land prices are simply a “serendipity”, an added value, to the type of farming business I am writing about. I have found an extremely unique business opportunity, which will generate a great ROI (return on investment) and is completely passive. It has been structured by the developers (all foreigners) to be a one turnkey investment price. The price includes cost of the land, plus all

Clearing, planting, cultivation and harvesting for the first 5 years.

The business has been priced to fit the capital investment budget of the average foreigner retiree, and all landowners will be members of a cooperative which will share the farming equipment (tractors, equipment shed, and others). The farm will be “farmed” by the developer’s management team

The hottest trend now is in organic farming, and yet it is only in its infancy stage in the Philippines. There is one export product in particular which has caught my attention – the pili nut. The Philippines is the ONLY country with which produces and processes this nut in commercial quantity.

The current status of the pili is equivalent to that of the macadamia some 30 years ago. It has huge potential to develop into a major industry. They are in demand not only in Hong Kong and Taiwan but also in Singapore, Korea and Austria.

Do You Know Your Objectives in Networking?

Networking is Much More Than Socializing

Casual networkers view networking as a form of socializing without focus and without goals. Effective networkers view it as a process of relationship building with very clear goals and objectives.

Business networking, like any other business activity, must be a productive use of time. To maximize your networking effectiveness, you should therefore clearly define your goals and objectives.

Following are some of the most common objectives for business networkers:

Broaden your exposure in the marketplace and create a positive impression on as many people in your business community as possible.

Identify those who might be prospects for your products or services

Build relationships with those who offer products or services that might be of value to you or your clients.

Build relationships with those who might become referral or strategic partners.

Build relationships with those who are influential in your business community.

Build relationships with those who can further your career.

Build relationships with those who might provide business counsel or become advisors or mentors.

Those with whom you network are experts in their fields. They can answer questions about their area of specialization, share their business experience and knowledge, and may in some instances become mentors. No one can know all there is to know about business and the advice of others can at times be extremely valuable. Networking at trade association expos and conferences will allow you to meet executives from other companies who might some day be your employer or be able to recommend you for an opening they have heard about. Earning the respect of those in your local community can lead to offers when positions become available. We have all heard the idiom: “It is not what you know, it is who you know that counts.” Building relationships with the most influential members of your business community is a key to your success.

Referral partners are individuals who are able and willing to send you referrals in exchange for your help sending referrals to them. To find them at a networking event, you must have carefully thought through who the best referral partners for you might be. You must also have a strategy for turning a casual meeting into an opportunity to develop the relationship. As a business person you and the firm for which you work have needs for a wide variety of products and services. Networking is an effective way of meeting those who provide these products and services in your local community. Your customers also need a variety of products or services for business and personal use. If you can direct them to reputable providers of those services, you will be more valued as a resource and their loyalty will be enhanced. Keeping your client’s needs in mind as you meet others at networking events, should be a habit you develop.

Most view this as the primary objective of networking. To identify prospects and create sales opportunities, you must be prepared to describe your business and its benefits clearly and succinctly. You must also be ready to qualify “suspects” and, if necessary, present your Unique Selling Proposition. The goal of an initial networking contact is not to close a deal, it is to create a follow up opportunity. Networking is an extremely effective way of creating awareness in your business community. For many start up companies, it is the only form of marketing that can be afforded. Fortunately, networking can also be the most effective form of marketing available.

Most business professionals view networking as a means of marketing their business, but overlook some of the other objectives that may be equally or even more important. Too much emphasis on selling at networking events can leave a negative impression. If you want to make a positive impression, make sure the discussion centers on them, not you.

What goals and objectives have you set for your networking activities? Which are most important? How will you measure your success? Like any other business activity, you must approach your networking with goals and a plan to achieve them.

Products And – Or Services – Defining "Service-Oriented" Products and the Related Role of Technology

The economy can be analyzed using both market-driven and production-driven approaches to industry classification. The North American Industry Classification System (NAICS) uses a market-driven approach; the older Standard Industrial Classification (SIC) uses a production-driven approach.

Under a market-driven approach, the economy comprises goods-producing and service-providing industries. Goods-producing industries include: natural resources and mining, construction, and manufacturing; service-providing industries include: wholesale and retail trade, transportation (and warehousing), utilities, information, financial activities, professional and business services, education and health services, leisure and hospitality, and public administration.

Under a production-driven approach, the economy comprises product-driven and service-driven industries. Product-driven industries comprise enterprises that manage inventories available for sale as primary activities (regardless of whether they transform them or not). Under this approach, the retail, wholesale, and food service industries are product-driven. (The kitchens of food service providers are equivalent to factories.) Product-driven enterprises may have extensive cost accounting and operations practices for inventory management.

Industry classifications can be applied to an enterprise as a whole (the primary industry), and to the establishments within it, which may be in differing secondary industries. Establishments are facilities that include plants (factories and warehouses) and branches (retail and wholesale outlets).

For example, the hospitality industry is service-driven; under the production-driven approach, the bar and restaurant establishments within a hotel are product-driven. The entertainment industry is service-driven; under the production-driven approach, the retail and bar establishments within a theater are product-driven. The health care industry is service-driven; under the production-driven approach, the retail pharmacy establishment within a hospital is product-driven. Under the market-driven approach, all of these establishments are service-providing.

For example, a manufacturing enterprise is goods-producing under a market-driven approach, and product-driven under a production-driven approach. If it also operates a retail delivery system, the stores are service-providers under a market-driven approach, and are product-driven under a production-driven approach. If all sales revenue is sourced from its own products, the enterprise is in two primary industries. However, if forced to decide, its selection should be based upon core competencies – activities that it performs well. The enterprise can be divided into two separate business units: manufacturing and merchandising. The merchandising unit is an internal customer of the manufacturing unit. However, depending on strategy and policy, the manufacturing unit could sell products to wholesalers and other retailers, and the merchandising unit could buy products from other manufacturers and wholesalers. Under a market-driven approach, the manufacturing unit is goods-producing and the merchandising unit is service-providing, whereas under the production-driven approach, the merchandising unit is product-driven.

The make-up of the economy changes overtime as newer industries emerge and grow and older industries mature and decline. For example, the manufacturing industry is shifting from vertically integrated to strategically outsourced. Strategic outsourcers may manufacture specialized components and assemble finished products. However, by outsourcing the manufacturing of utility components to specialty scale manufacturers, strategic outsourcers can lower their production costs.

Biotechnology and nanotechnology are emerging industries. The information industries are growing as technology becomes more ubiquitous, and as knowledge is packaged in digital products. Knowledge is information that has been learned and retained. In the future, knowledge will be retained extensively in electronic form.

Products and services…

The term “product” is associated with something that is tangible – the resulting inventory from agricultural, mining and drilling, construction, and manufacturing activities. Outputs are either end-products, or components that are assembled into end-products in downstream processes within the enterprise or in its customers.

The term “service” is associated with something that is intangible – capabilities either delivered at the point or time of sale, or shortly thereafter, or as a supporting service. Supporting services can be purchased at the time of sale for downstream use, or later, and consist of such items as warranties beyond those bundled with the product, preventive maintenance, and routine cleaning and repairs.

Functions and features of products are easier to discern than those of services, which are event or activity driven, and may occur in the future.

The term “time of sale” means when a contractual or non-contractual agreement between a buyer and a seller is made, and does not necessarily mean when revenue is recognized and earned. Revenue is recognized and earned according to the accounting principles that fit the service offering, which may be over a period of time.

A commodity is a product or service that is indistinguishable and interchangeable with another of the same type because there is little to no value added. Many commodities are natural, such as produce, minerals, oil, and gas. Services can be commoditized too. The distinguishing factors of a commodity provider include convenience, quality of service, and price.

Product-driven enterprises also offer delivery and supporting services. Delivery services include arranging for transportation, dealer preparation, training, and gift wrapping. Supporting services include cleaning, repairs, and maintenance. To remain competitive over time, enterprises have to add services with their product offerings that exceed customer expectations. However, if customers require such services, then they must become part of the basic offerings. For example, bathroom facilities and color TV are included in modern hotel rooms, even though the primary purpose is providing a place to sleep.

Although services are intangible, their effects are not. Transportation services move people, cleaning services remove dirt and stains, and repair services restore items to working order. Services require facilities, equipment, and supplies that are bundled in. When products are bundled in, the enterprise pays sales or use tax, if applicable; when products are sold with services, the customer usually pays sales or use tax, if applicable.

Service-driven enterprises can produce tangible deliverables. For example, dry cleaners produce clean and pressed clothes; professional service firms, such as architects, accountants, attorneys, and consultants produce reports; and engineers produce design drawings that can be transformed into facilities, equipment, or other tangible products.

The recording and movie industries employ technologies that can capture sound and pictures. Starting in laboratories, these industries transform science into art. Hence, live entertainment performances (services) can be transformed into recorded products. As a consequence, an event or activity can be reproduced, duplicated, distributed, and repeated to the public-at-large indefinitely. Digital products are impacting traditional manufacturing, distribution, and consumer buying behaviors, and placing intermediaries at risk.

Process control and information technologies have enabled seamless integration between designers and manufacturers. The “design-to-construction” process becomes ubiquitous as computer-aided design and manufacturing technologies (CAD/CAM) enable a designer in one location to transmit specifications to manufacturers in others. The designs are virtual, and result in instructions that control manufacturing equipment in both local and remote locations. As a consequence, manufacturing can be outsourced strategically to any manufacturer that can accept electronic designs anywhere at any time. Because the process is seamless, the precision is higher.

As more enterprises adopt the design-to-construction model, dramatic changes will occur in the structure of industries. For example, in the publishing industry, books can be printed on demand from electronic files upon receipt of orders placed over the internet, eliminating the need for physical inventory available for sale at printers, publishers, and bookstores. The electronic files represent a virtual finished goods inventory from which physical products can be made when necessary. As a consequence, inventory carrying costs are lower.

Both product-driven and service-driven industries render service from centers that receive inbound and place outbound service and telemarketing calls. Call center activities can be outsourced in a similar fashion to manufacturing.

The notion of strategic outsourcing can be applied to almost every function in an enterprise provided intellectual property is protected. However, although management consultants may be used in the development of strategy, the ultimate responsibility for planning, deployment, execution, and performance remains in-house with the governance function.

Products and/or services…

The term “products and/or services” describes collectively all types of products and services.

Service-driven industries are evolving into providers of both “product-oriented” and “service-oriented” services. In order to differentiate product-oriented services from the delivery and supporting services, the term “service-oriented” products provides more clarity. Service-oriented products must be definable, duplicable, and repeatable. They are intangible outputs of processes that are represented by tangible items, packaged in a definable form. Technology plays a major role in the delivery through hardware, software, and both voice and data telecommunications. “Hard” products are tangible and “soft” products are intangible.

For example, traditional land phone line services were offerings with few differentiating features, primarily in the style of equipment. As the telephone system migrated from electro-mechanical to electronic, the offerings were transformed into service-oriented products with features such as call forwarding, caller identification, call waiting, and voice mail. Cell phone offerings are service-oriented products with more extensive functions and features than land lines. Cell phone service-oriented products have cameras built-in, and have delivery and supporting services bundled in such as account information, internet access, and application software for calculators, calendars, contact information, notes, games, music, pictures and movies. Cell phone and computer technologies are converging.

In the financial and business and professional services industries, service-oriented products are packaged with such items as accounts, agreements, brochures, contracts, databases, documents, equipment, facilities, policies, procedures, and statements.

In the leisure and hospitality industries, service-oriented products such as flights, hotel rooms, car rentals, and limousine services are packaged with facilities, equipment, and supplies. The types of facilities and equipment define specific offerings. For example, an Airbus A380 renders a different experience from a Douglas DC3 even though the principal service is the same: providing air transportation. A hotel room with a view of the ocean renders a different experience from one with no windows at all, even though the principal service is the same: providing accommodation. The quality of the accoutrements such as blankets, pillows, towels, newspapers, cable TV, internet access, and fruit baskets can affect the overall experience. A Cadillac renders a different experience from a Chevrolet, even through the principal service is the same: providing a rental car to drive, or a limousine.

Travel-related service-providers bundle air, hotel, car rental, and limousine services into packages to make the buying decisions easier for consumers. Event planners bundle travel-related services with conference and convention services for enterprises.

Consumables, durables, and facilities…

Manufactured products consist consumables and durables.

Consumables are products change or wear out as they are used and comprise food, clothing, personal care, health care, household supply, and office supply items. Media such as books, records, audio and video CDs, and DVDs are classed as consumables – the intellectual property is worth far more than the media.

Durables are long lasting equipment items such as appliances, furniture, and vehicles.

Digital products may involve no media if they delivered electronically other than the server of the publisher and the electronic device of the user.

Facilities are the outputs of construction activities and are made of durable materials.

Contractual or non-contractual products and/or services…

Agreements are contractual or non-contractual based depending upon the type of offering, and the nature of the relationship between buyers and sellers.

Consumable products can be sold with the right to return for exchange or refund within a certain period of time. Durable products can be sold with agreements that define warranties and maintenance.

Service-oriented products and services can be sold with agreements that specify exactly what is to be delivered and when, with procedures for reporting problems or complaints.

In negotiations, discussions should embrace the specific functions and features of hard and soft products, and the delivery and supporting services. Experienced negotiators pay attention to both the tangibles and intangibles because the total cost of ownership comprises both.

Digital-construction and digital-manufacturing…

As technology continues to develop, service-oriented products will become more common because it makes intangible items definable. New knowledge-based industries will emerge.

The reproduction of software on physical media is classified as goods-producing, and all other development and publishing activities are classified as service-providing under NAICS. However, software and other digital products are durable because they can last indefinitely, even if they have to be transferred among storage media. Software products are developed by service-providers such as business and professional services firms, publishers, and “in-house” developers. Nevertheless, software development activities require the project management disciplines of goods-producing industries, such as construction and manufacturing, to be successful.

The “digital-construction” and “digital-manufacturing” industries are evolving: digital construction delivers software; digital manufacturing delivers soft service-oriented, information, and knowledge-based products. However, through CAD/CAM processes, software delivers hard products too. In the future, almost all hard and soft products will result from digital-construction and digital-manufacturing processes.

Defining product and/or services is an enterpriship (entrepreneurship, leadership, and management) competency.