Learn: Added Value

Welcome!Today we'll be learning about added value. It's an important concept in business operations that helps businesses stand out in competitive markets. Let's explore how it works and why it matters.

What is Added Value?Added value refers to the difference between the selling price of a product and the cost of its inputs (materials, labour, etc.). It represents the extra worth a business creates for customers through its products or services.

Why is Added Value Important?Added value is important because it allows businesses to generate profit, differentiate themselves, and justify higher prices. By creating value, businesses can attract customers and build loyalty.

How Businesses Create Added ValueBusinesses create added value by improving products, offering better customer service, or marketing effectively. For example, they might use branding to make products seem more desirable or invest in quality to justify a higher price.

Examples of Adding ValueSome ways businesses add value include improving product design, providing excellent customer service, using appealing packaging, or creating strong branding to increase desirability.

Review Time!Great work! You've learned about added value, its importance, and how businesses create it. Now let's test your understanding with a few questions.