Even tangible products are services. When I buy an ear of corn, I'm paying for someone else to plant seeds, irrigate, fertilize, and harvest... and then for someone else to drive it to a convenient location. Sure, there are some commodity prices involved, (seeds, fuel, etc) but when you trace it back, what you're really paying for is mostly services.
That's not to say discrete services aren't valueable in their own right. I end up designing a lot of data-entry forms for people who hire idiots who type "New York" or "Mew York" or "NY". The few hours I spend creating a standardized data entry form saves countless hours of data normalization down the road, and those dollars saved can be utilized in other ways...