I am confused these days. Selling service is much easier to make money than dealing with the real products? Nowadays, it is difficult to find products both cheap and quality. What are you guys dealing with?
The only way you can achieve to make cheap ad quality products is when you achieve economies of scales. When you make one product in a huge quantity then the price automatically decreases, which is obviously the logic of economies of scale. When you are done making the products, then you have to market it. Which you already probably know. And yes you are right, to sell services is easier than products, because in that you have people ready to provide services, where as when you are selling a product, you have to wait for the product's manufacturing to be completed, and then sell it, where as services can be provided on the spot, anytime, anywhere!!
Both commodity market and service market are full of suggestions and very competitive. Yet configuring a service you offer to match the customer's needs is MUCH easier than changing the product you manufacture. Changing amount of traffic allowed for shared hosting package is waaay easier as compared to changing the dairy product taste, you agree? That is why services are a much more versatile proposition, able to respond ti customer's request in minutes, not in months.
It is much more competive nowadays for almost various services have a lot of operators. It is so hard to find out a kind of service that few people are involved in.