When we make software we are making good or we are producing service?
Quick glance at wikipedia article:
In macroeconomics and accounting, a good is contrasted with a service. A good here is defined as a physical (tangible) product capable of being delivered to a purchaser and involves the transfer of ownership from seller to customer, as opposed to an (intangible) service.
Software is not physical (tangible). And “delivered” means physically transferred i think. Software “replicated” instead.
In many cases there is no “transfer of ownership”. Look in your windows’ licence. Microsoft still owns it.
But there is much more important things to talk about.
Customer wants support. And when you make software specially for him he wants support for free. He thinks that you have not finished it. Sometimes development becomes never-ending story. Could you imagine such behaviour for manufacturer of any good in your house?
But what if you sell “development” instead of “software product”? Just change of names?
Look closer. You saw it. It is what in-house programmers do in small companies all around the world. It is what open source developers do. It is what programmers do when they write for themselves. No specs. No final products. Just a constant support and development.
Cool. One question. How to tell customer about?