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Added Value
Mr M Young
Starter
Added Value
Added Value = the
difference between the
price of the finished
product/service and the
cost of the inputs
involved in making it.
Selling Price Cost
Price
Mr M Young
Example:
A birthday card is sold for 2.50. The cost of production
including materials and labour comes to 1.10.
2.50 - 1.10 = value added
= 1.40
You try:
A juice drink is sold for 2.20. It costs 42p to produce the
drink. How much value has been added? (show your
workings)
Mr M Young
Mr M Young
Deliver
great
customer
service
Operate
efficiently
Offer
convenienc
e and speed
Mr M Young
Add product
features
customer
want
Have a
unique
selling point
(USP)
A way to
make your
product
different
from its
rivals.
Dont have
to compete
on price
Mr M Young
Higher
profits!
Re-Cap
Mr M Young
Plenary Quiz
Define added value.
What is the formula for
calculating added value.
Explain three methods of
adding value.
Define a USP.
What are the benefits of having
a USP?
Mr M Young