what is the definition of value add?
Value added describes the enhancement a company gives its product or service before offering the product to customers. Value added describes the enhancement a company gives its product or service before offering the product to customers. Value-added applies to instances where a firm takes a product that may be considered a homogeneous product, with few differences (if any) from that of a competitor, and provides potential customers with a feature or add-on that gives it a greater perception of value. BREAKING DOWN 'Value Added' A value addition can either increase the product's price or value. For example ...