Understanding Value Add

Value add is a commonly used phrase in the business world, especially for those just entering the job market. But what exactly does it mean? We’re here to help explain this important business concept.

In its simplest terms, “value add” is a way to describe any activity, process or idea that increases the value of something. It could be anything from providing a customer service solution to streamlining purchasing processes.

The idea is that there is something valuable that you are adding each time in which someone benefits — either you, your employer, your customer, or someone else — therefore, “value add.” It’s not about merely being busy, taking greater responsibility, or putting in extra hours; value add is focused on providing something that has an immediate or long-term impact.

Let’s take a look at a few examples:

1. You work in customer service and you are able to negotiate a discount for a customer who is unhappy with their purchase. By resolving the customer’s issue, you add value to that customer’s satisfaction.

2. You are a purchasing manager and you discover a supplier who can offer better terms than the current one. By making this switch, you add value to the purchasing process and make sure that the company is spending the most efficient amount on a desired product.

3. You write a blog article for an organization and its content engages and encourages people to take action. By developing content that brings new leads in, you add value for the organization.

As you can see, value adds can be on a macro or micro scale. It’s all about making sure that you’re giving something back, and always working towards improving something.

Value add is an important concept to understand in the business world. The more you can do to add value, the better off you, your employer, and your customers will be.