What isAdded Value

Value-added refers to the increase in worth or utility of a product or service resulting from a specific process. ASPs and VARs are examples of entities that add value to services and systems, respectively, through installing software or applications on computers.

Adding Value to Products and Services

What is Value-added?

Value-added refers to the additional value that is added to a product or service as the result of a certain procedure. This procedure could be a process, skill, or expertise that enhances the utility of a product or service, making it more desirable to the customers.

For example, when you buy a car, the manufacturer has already added value to it by designing and building the car to meet certain standards. However, a custom car shop might add even more value to the same car by installing high-performance parts or custom features, making it more valuable and desirable than a regular car.

What are ASPs and VARs?

ASPs (Application Service Providers) and VARs (Value-added Resellers) are both examples of businesses that provide value-added services to their customers.

ASPs offer web-based software applications and services to their clients, such as email hosting, customer relationship management (CRM), and online collaboration tools. By providing these services over the Internet, ASPs add value to the businesses they serve by giving them access to powerful tools without requiring expensive hardware or dedicated IT staff.

VARs, on the other hand, specialize in adding value to hardware systems by installing applications or proprietary software on computers. For example, a VAR might purchase a batch of computers from a manufacturer and then install a custom operating system and software package tailored to meet the needs of a specific industry or customer. This value-added service allows customers to get more value out of their computer systems and achieve better results.

Why is Value-added Important?

Value-added is important because it creates a competitive advantage for businesses. By adding value to their products and services, businesses can differentiate themselves from their competitors and offer unique benefits to their customers.

For example, if two companies offer the same product at the same price, but one company offers additional services like installation and maintenance, customers are more likely to choose that company because they offer more value.

Furthermore, value-added services can increase the customer’s perceived value of a product or service, making them more willing to pay a premium price. When customers feel like they are getting more value for their money, they are more likely to choose that product or service over a cheaper alternative.

In The resolution

Adding value to products and services is essential for any business looking to stay competitive in the market. By providing unique and valuable services to their clients, businesses can differentiate themselves from their competitors and create a loyal customer base that is willing to pay a premium price for their offerings.

ASPs and VARs are just two examples of businesses that provide value-added services to their customers, but value-added can take many different forms across various industries. Whether you’re adding custom features to a car or offering web-based software applications, the key is to identify the needs of your customers and provide the services that will add the most value to their lives.

- Advertisement -
Latest Definition's

ϟ Advertisement

More Definitions'