The progression of economic value starts with commodities (mostly in raw form) that are transformed into goods or products which when coated with frills becomes a service and then with steps to make it endearing makes it an experience.
Correspondingly at every stage price sensitivity decreases, margins increase and competition decreases.
A great example will be coffee. Companies that trade coffee only get a dollar or two a pound. When a manufacturer grinds, packages, and sells those same beans to a grocery store, turning them into goods, the price to the consumer is $6 to $12 per pound (10- 30c per cup). If the same coffee is sold in a café, then it can sell for about $1.50 per cup. Bigger brands like Starbucks or Peets can charge upto $ 3 per cup as they involve experiential aspects while selling their cup of coffee.