Value added, in any kind of relationship – particularly business – is the reason for long-term success. When your business provides value, be it in the form of products or services, that give your client(s) the opportunity to experience the satisfaction of completing their objectives or achieving their desired results. They receive value. When you as a professional add true value, your business also does the same by extension, and your clients therefore are willing to pay for that value; because it’s worth it. One-time clients also become repeat clients, long-term business relationships are established because there is a genuine interest in bettering the life of both parties involved. Value creates trust, impacts lives, and builds loyalty. (Related: EQ & Compassion)
Naturally, the major difference between profit and added value is that the former is more quantifiable. Imperially speaking, profit equals the cost of sale minus costs of production, transportation, and marketing. In other words, it’s the amount we receive after we’ve deducted our expenses. Contrastingly, value added is more subjective. Sometimes, it can be calculated monetarily, to a degree. For instance, the value added in a particular transaction can save someone an amount of money – that is quantifiable. Nevertheless, value added also involves perceptions, which are difficult to measure because the experience and results of value added are often emotional – and related to one’s internal experience.
Value creates trust, impacts lives, and builds loyalty.
Although emotional benefits are sometimes hard to quantify, they are invaluable to our clients. Peace of mind, security, safety, duty are emotions and belief systems that go beyond material things. Those are the true results that bring happiness and create value. When your business provides solutions, in the form of products or services that give your clients value, profit will be a by-product of that experience. Therefore, focus on changing lives and impacting people; the money will follow, naturally. (Related: We Should Be A Vessel of Change)
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