Added Value

Question 1

What is adding value?

Answer 1

Difference between price charged and cost of making product.

Question 2

What are examples of added value?

Answer 2

• additional features.
• branding.
• high customer service.
• delivery service.

Question 3

What are the advantages and disadvantages of added value?

Answer 3

Advantages:
- charge higher price.
- higher profit level.
- enhanced brand image.

Disadvantages:
- not guaranteed adding value can gain increased price.
- increased price could reduce sales.
- high competition, harder to increase price successfully.