A-Level AQA Business Revision Unit 1(Part 5) : Added Value

Adding value adds extra pricing to the product, and allows the business to generate greater revenue due to the higher price.

If a business sells DVDs, they can add value by adding a special feature or design.

Added Value - The difference between the price of the finished product and the cost of materials

Ways of adding value are:

- New design features - Extensive marketing -Location

- New production methods - Adding human features/resources -Improving brand reputation

Adding value also allows a firm to gain a competitive advantage. Other methods of doing so are:

- Improving quality - Having a patent -Copyrighting -Having a strong brand image

- Having exceptional customer service -Having a strong USP - Finding a gap in the market

There are significant benefits to adding value. These are:

- A higher price - Greater profit -Ensuring repeat purchase

- Gaining a USP - Building customer loyalty