What is a value added product?

value added product is a product with other features beyond those that usually come to similar products. In general, value added functions add little, if at all, increase the cost of production and sale of the product. The inclusion of low -cost extra functions allows the manufacturer to offer an upgraded product in the same price range as other products that do not have value added functions. In some companies, especially agricultural companies, the added value product may also refer to a highly affordable item created from the same basic materials as the lower prices item that offers different or better features than the original material. In electronics, an example of the product can be adding a notebook with a built -in web camera and a microphone. Although webcams and microphones are relatively cheap features for production, especally, if they are included as part of the notebook, the notebook can be more valuable for users looking for these features. WhenThe customer chooses between products at the same price range, usually decides to product with value added functions, although the function does not necessarily have something that he wants or needs.

Sometimes a company can make a product with added value to include a product sale that could usually cost extra money. One example of the use of value added services to increase the apparent product value is to include free product support or guarantee coverage. The consumer who buys two computers that are otherwise identical is most often choosing a computer with value added services over the one that lacks free coverage or service. For example, some manufacturers offer an annual manufacturer's warranty to provide their computer edible than a competing system with a three -month warranty or without a warranty.

for a farmer's or agricultural organization could be a product added throwNotes of products made of raw materials made by agriculture. For example, a farmer of strawberries that sells strawberries can also produce strawberry cakes and strawberry jam to increase the strawberry value to the consumer. The farmer can often charge more for a product made of his crop than for the yield of raw crops, which increases the profit on the strawberries that has grown.