What is value adding and how will it help your business
Very simply, value adding means the addition of extra features to a basic product for which a customer is then willing to pay extra. It’s the dry aged flavour in a steak, a special marinade on chicken, or just a free trinket, which makes your product worth more to your buyers. It’s also one of the easiest ways to increase your profits.
So how can this help your business? Firstly, it can make you stand out from the crowd. More unique, niche products can help build your own individual brand and gain the attention of your target market. Adding your own twist to a basic product sold by many, saves you from the danger of being swamped in a sea of identical competition.
More critically, with the simple addition of a few features to a base product you already sell, you instantly raise the value of the end-product significantly, without necessarily increasing costs at the same ratio, improving your profit margin.
In this modern age, this is often achieved through machinery. There is always a machine out there that can do tasks more efficiently and often better than human hands, with far lower labour costs. A great example for the meat industry is a dicing machine. Dicing meat by hand is one of the most painstaking and time-consuming tasks ever faced by a butcher, yet a dicer can complete this almost instantly and with far greater accuracy.
Valuing adding is a simple, comprehensive concept, which can be implemented in any business for any product, to give your company a unique point of difference, and make your customers willing to pay more for what you offer.