Adding Value to Products/Services

• Adding value is the difference between the price that is charged to the customer and the cost of inputs required to create the product or service

  
• Marketing and brandingBuilding brand identification and customer loyalty to the brand allows the firm to charge a higher price for its products thus increasing the added value e.g Yeezy 350 V2 sneakers sell for $250 a pair
• • Functions and featuresAdding unique features allows the firm to charge a higher price for its products thus increasing the added value e.g. Samsung Galaxy Watch 5 has robust health tracking tools built into it, along with an amazing screen 
• • Customer serviceBusinesses that ensure they have a good reputation for customer service can charge a higher price for their products thus increasing the added value e.g. John Lewis is considered to provide the best customer service amongst department stores in the UK 
• CustomisationAllowing customers to design or create their products allows the firm to charge a higher price thus increasing the added value e.g. MoonPig birthday cards can be completely customised
• PackagingApple products are well known for their superior packaging which creates an exciting opening experience for the customer. This allows the firm to charge a higher price for its products thus increasing the added value