Extra value a business creates through its production, distribution, or marketing process
Ways to add value in the production process
Improve product design, features, quality, or give it a unique selling point (USP)
Ways to add value in the distribution process
Offer the product or service in a more convenient location, more outlets, easier hours, or user-friendly e-commerce website
Ways to add value in the marketing process
Create a brand image
Reasons why adding value to a product is important
Reasons to add value to a product
Give a competitive advantage, increase chances of repeat business, stand out in a competitive environment, charge higher prices, increase profit per unit, lower break-even output, increase margin of safety, reduce business risk, increase market share
Adding value can make the product or service stand out from rivals, giving a competitive advantage and increasing repeat business
Adding value may allow charging higher prices due to better design, convenience, or brand image, making customers less price-sensitive
Adding value can lead to a larger profit per unit, lower break-even output, increased margin of safety, and reduced business risk
Adding value can increase market share, especially when combining improved design, convenience, and brand image
