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84 Examples of Added Value

 , updated on July 16, 2022
Added value is the difference between the value of inputs and outputs of a business, team, process or activity. For example, if you mow your lawn, your lawn becomes more valuable to you as you may see it as more usable and aesthetically pleasing. Value can be added by a business, government, service, product, team, process, activity, task or by capital such as a machine. The following are types of added value with an illustrative example of each.
Automating Work
Software
Beauty
Hairstylist
Building Houses / Buildings
Carpenter
Building Infrastructure
Construction Company
Clothing
Fashion Brand
Comfort
Cafe
Communicating a Message
Digital Advertising Company
Computing Things
Mobile App
Connecting Buyers to Sellers
Online Auction
Connecting People
Conference
Convenience
Convenience Store
Converting Materials to a More Usable Form
Lumber Mill
Cooking Food
Homemaker / Restaurant
Crafting Things
Craftsperson
Creating a Sense of Belonging
Team Sports
Creating Art
Artist
Creating Electricity From a Resource
Power Plant (e.g. burns natural gas)
Creating Electricity From Energy
Solar Panels
Creating Media
Vlogger / Magazine
Creating Shared Experiences
Concert
Creating Social Environments
Nightclub
Culture
Local Festival
Custom Manufacturing
Custom T-shirt Printing
Customer Support
Customer Service Functions of an Airline
Delivering Products
Package Delivery / Ecommerce
Design
Graphics Design Freelancer
Developing a Technology
Freelance Software Developer
Developing Knowledge
Non-fiction Author
Distributing Products
Retailer
Education / Learning
University / Trade School
Entertaining
Streaming Media
Epic Experience
Video Game
Executing a Business Process
Customer Service Outsourcing
Facilitating Commerce
Payment App
Facilitating Communication
Mobile Voice Service
Facilitating Debate / Arguments
Social Media
Facilitating Promotion / Self Promotion
Social Media
Fixing Something
Plumber
Friendly Service / Being Nice
Hotel Service Desk
Generating Social Status
Fashion Brand
Growing Food
Farmer
Healthcare
Hospital
Housing / Shelter
Landlord
Investments
Exchange Traded Fund
Maintaining Things
Handyman / Handyperson
Making Things More Aesthetically Pleasing
Interior Design
Manufacturing Products
Solar Panel Manufacturer
Marketing / Selling Assets
Real Estate Agent
Marketing / Selling Goods
Retailer
Nature Experiences
National Park
Operating Infrastructure
Data Center
Opportunity to Play
Park / Video Game
Organizing Events
Wedding Planner
Packaging Something
Food Processing Facility
Preserving Wealth
Bank Account
Providing a Market
Flea Market / Stock Market
Providing a Standard
Building Codes
Providing Adventure
Sailboat
Providing Choice / Variety
Grocery Store With 5 Kinds of Apples
Providing Gossip
Social Media
Providing Research Tools
Internet Search
Providing Safety
Sidewalk / Pedestrian Infrastructure
Providing Seating
Restaurant
Providing Security
Unbreakable Door
Providing Social Interaction
Gym / Personal Trainer
Recreation
Skating Rink
Reducing a Risk
Fire Detector
Reducing Pollution
Air Purifier / Forest
Regulating an Industry
Transportation Safety Department of a Government
Resolving Disputes
Lawyer
Saving Time
Express Train / Bullet Train
Solving Customer Problems
Landscaper
Storing Value
Money / Bank Accounts
Style
Fashion Brand
Tech Support
Cloud Services Support Tickets
Testing Things
Quality Control Department of Manufacturer
Traditions
Traditional Dance Festival
Transferring a Risk
Insurance
Transmitting Information
Objective News
Transmitting Opinions
Biased News
Transporting Goods
Shipping Service
Transporting People
Airline
Useful Advice
Consultant
Wellness
Spa

Calculating Added Value

Added value is the difference between the value of the inputs and outputs of an activity, process, service or organization. In other words, it is a way to measure value generation at any level of a business. As a simple example, if a fruit stand buys an apple for $1 and sells it for $2, the added value of the transaction is $1. It is difficult to calculate added value when no money actually changes hands but it can be estimated. For example, the fruit stand may estimate that distributing the apples produces $0.50 value, cleaning the apples produces $0.10 and selling the apples produces $0.40 in value. Note that this adds up to the $1 in total value creation.

Added Value vs Value Capture

Added value is the creation of value. You may or may not be able to capture this value for yourself. For example, an author that publishes a book that changes the world may only get paid a very small part of the value that they have generated. This is a very common situation whereby creating value doesn't mean that you get paid that value.

Added Value vs Rent Seeking

Added value is the creation of value whereby you might try to capture some of this value for yourself. Rent seeking is the process of capturing value without creating it. For example, an employee who tries to avoid work and value creation but aggressively seeks compensation, promotions and political power.

Negative Value

Things can create negative value known as economic bads. For example, a service that sprays a chemical on a lawn that creates $40 in value by killing a few weeds that causes $40,000 in health damage to a neighborhood.
Overview: Added Value
Type
Definition
The difference between the value of inputs and outputs of something.
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