added value

• Adding value


  The extra value a business creates through its production, distribution or marketing process
• Ways to add value through production


  1. Improve product design

  2. Improve product features

  3. Improve product quality

  4. Give the product a unique selling point (USP)
• Ways to add value through distribution

  1. Offer the product/service in a more convenient location

  2. Offer more outlets

  3. Offer easier hours to access

  4. Offer an easy to navigate e-commerce website
• Ways to add value through marketing

  Create a brand image
• Reasons to add value

  • Gives the product/service a competitive advantage
  • Increases the chance of repeat business
  • Allows the business to charge higher prices
  • Increases profit per unit
  • Increases market share
• Charging higher prices


  Customers become less price sensitive
• Charging higher prices


  Increases profit per unit
• Increasing profit per unit

  Decreases the break-even output, increasing the margin of safety and reducing business risk