Increasing added value is one way to attract and retain buyers. Businesses that add value for their products and services typically find themselves merchandising them in higher margins than those that just promote the raw materials accustomed to produce the goods. Adding value can be as basic as including free shipping or offering a money back guarantee, although can also include more intangible benefits just like outstanding customer satisfaction.

Creating added value is an important aspect of business and is an essential contributor to economic growth. It allows businesses to compete in markets where competitors may well not have the assets or ability to compete on cost alone. Additionally, it is an important component of a competitive strategy that enables companies to satisfy the demands and expectations of shoppers and build new market segments.

The challenge for managers in SMEs in producing countries is usually to control increased added value not having increasing the sales price or merchandise costs. This is particularly difficult in markets in which the increase in added value brings about a decline in profit and refinement cost grades. To deal with this problem the standard paper presents a model that considers added value, revenue and creation costs.

Additional value of an product is the difference among its value and its total production costs. It includes sales revenue, the price tag on buying bought-in materials and under one building production costs. Added value is important with regards to competition as it represents the profitability of a organization and is an indicator of economic expansion.