Adding value

10,066 views
9,378 views

Published on

An introduction to the concept of ass

3 Comments
10 Likes
Statistics
Notes
  • its really helpful
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • this is my realm, adding value, thanks,
    my solution for recession is universalisation, means evaluate all assets of universe and then apply necessary sum of new currency (Zik=100$) to pay all debts and to buy off all taxes from national governments ....
    of course for this we need adequate entity, i see on horizon only myself as the secular and universal, legal and official The God, recognised by UN and with contracts with all national states governments,
    of course i invite you all to create a fresh new account at google, free, but with my data: universal identities names and universal residence, like this: Zababau Ganetros Cirimbo Ostangu zaqaqef@gmail.com ogiriny64256142, ( you can create this one but then inform me), access to account i have to have because this is divinating universalisation, but you can open it for all, i simply have to arrange it to adapt to paradigm, isn't it ......
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Good one for revision
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total views
10,066
On SlideShare
0
From Embeds
0
Number of Embeds
6,009
Actions
Shares
0
Downloads
14
Comments
3
Likes
10
Embeds 0
No embeds

No notes for slide

Adding value

  1. 1. Adding Value
  2. 2. What is meant by “adding value”? Adding value = the difference between the price of the finished product/service and the cost of the inputs involved in making it
  3. 3. Example of value added calculation <ul><li>Sales revenue </li></ul><ul><ul><li>1,000 units sold for £20 each = £20,000 revenue </li></ul></ul><ul><li>Costs </li></ul><ul><ul><li>To make 1,000 units </li></ul></ul><ul><ul><li>Raw materials - £7,500 </li></ul></ul><ul><ul><li>Labour - £5,000 </li></ul></ul><ul><ul><li>Other production costs - £2,500 </li></ul></ul><ul><ul><li>Total costs = £15,000 </li></ul></ul><ul><li>Added value </li></ul><ul><ul><li>£20,000 less £15,000 = £5,000 </li></ul></ul>
  4. 4. Example of value added <ul><li>Tyrrells Potato Chips </li></ul><ul><ul><li>Will Chase had been farming potatoes for 20 years (loss-making) </li></ul></ul><ul><ul><li>Wanted to produce something with more added value </li></ul></ul><ul><ul><li>Came up with idea to make hand-fried chips with distinctive flavours and packaging </li></ul></ul><ul><ul><li>Successfully created a premium product and turned Tyrrells into a profitable business </li></ul></ul><ul><li>www.tyrrellspotatochips.co.uk </li></ul>
  5. 5. Ways to add value <ul><li>Build a brand </li></ul><ul><li>Deliver great customer service </li></ul><ul><li>Add product features and benefits that customers want </li></ul><ul><li>Operate efficiently </li></ul><ul><li>Offer convenience and speed </li></ul><ul><li>Have a unique selling point (“USP”) </li></ul>
  6. 6. The Importance of a USP Something that sets a product apart from its competitors in the eyes of customers, both new and existing
  7. 7. Benefits of adding value <ul><li>Charge a higher price </li></ul><ul><li>Create a point of difference with competitors </li></ul><ul><li>Protection against competitors offering lower prices </li></ul><ul><li>Focuses business on its target market segment </li></ul>
  8. 8. Signs that a small business is adding value <ul><li>Strong gross profit margins </li></ul><ul><ul><li>Gross profit / Total Sales </li></ul></ul><ul><ul><li>A strong signal </li></ul></ul><ul><li>Repeat business </li></ul><ul><ul><li>Sign of satisfied customers </li></ul></ul><ul><ul><li>Suggests customers feel they are getting value for money </li></ul></ul><ul><li>Good brand or name recognition </li></ul><ul><ul><li>Important for word-of-mouth recommendation </li></ul></ul>
  9. 9. Keep up-to-date with business stories, resources, quizzes and worksheets for your business course. Click the logo!

×