How a business can add value

A business can add value to a good or service in a number of ways.

For example, the following are some ways of adding value to a sweet potato:

Method of adding value Description Example

Saving customers time by making a product

Convenience easier to use will result in customers being Ready-prepared food, eg vegetable curry
willing to pay more

Brand awareness can encourage customers

An established ready-meals business that is
Branding to pay more for a product if they trust the
well known to customers
brand name that produces it

Customers are usually prepared to pay Good quality, organic vegetables used in
Quality more for higher-quality products the curry

The features that a product has or the way

Design that it is presented can add value
The way the vegetable curry is packaged

A unique selling point is something that

Produce sourced locally, making the
makes a good or service stand out from the
Unique selling point (USP) competition and makes it more attractive to
product more environmentally friendly than
competing brands
customers
Many businesses exist in order to meet a specific
need or fill a certain gap in the market. To do this, Businesses exist to meet customer needs. They do this by
they sell goods, services or both. organising resources to provide goods and services that
An entrepreneur might start a business enterprise customers want. Adding value to goods and services helps a
because there is a demand for the goods or business to sell more.
services they can provide. A dynamic market is
one that is in a rapidly changing business
environment. In order to understand what makes a
business dynamic, it is necessary to understand the
Businesses exist to meet customer needs. They do this by
market in which the business or
organising resources to provide goods and services that
business enterprise operates.
customers want. Adding value to goods and services helps a
A new business has to understand how dynamic
business to sell more.
the market is that it is entering. This can be very
different depending on the type of business.