Putting The Premium On Value-Added Products

It may sound like a paradox as far as traditional models go, but emphasizing the importance of value-added products is key in modern businesses. In this internet age of quick and easy access to buyers, maintaining customer engagement, support, and satisfaction is a tall order.

Image source: hlrbprocessing.com

It all begins with what the business can add to the purchasing experience and transaction. Value-added products go a long way in image-building and branding. Added touches, improved features, or a discounted price generate loyal customers who will overlook the basic offerings of the competition. Value-added means an improved customer perception of the product’s value.

It is crucial in the digital age to gain competitive advantage. Many businesses provide services like one-year support for repairs or product replacements, which often spell the difference for successful transactions in a highly discerning modern market.

Nowadays, it’s not so much what the product is, but what the product can provide to the customer. This is the important shift: understanding what buyers value, from the processing methods and environment-friendly packaging to the fast delivery of a company’s products.

Think of perceived value as paying more for an Adidas or Nike pair of shoes over other sneaker brands. Or opting for a more expensive BMW car because of the quality associated with the company’s vehicles. Pricing is determined based on what customers are perceived to value and are willing to pay for. All in all, value added is the refinement of a product with the customer fully in mind.

Image source: inyourtuscany.com

Jon Queen is currently a part of Amatex Capital, a Ukraine-focused private equity firm that places emphasis on the sectors responsible for gas and oil production, agriculture, production of value-added products, retail, and commercial real estate. Jon has worked with two leading Kyiv-based investment banks as Managing Director and Head of International Sales. More on Jon and his work here.

Advantages Of Investing In Commercial Real Estate

Image source: urpsml-lr.org

Given the volatility of the current economy, it is wise for investors to put their money in different asset classes. One such investment vehicle that offers myriad benefits is commercial real estate. Below are some of those advantages:

Income potential: Investors and developers have found their capital grow at high and quick rates when they invest in commercial real estate due to high demand for this kind of properties. Furthermore, it provides a steady source of income because of the long lease terms, which typically lasts from five to 10 years.

Ease of management: Compared with residential real estate, commercial types are less stressful to manage. Not only is there a fewer number of tenants to deal with, but commercial property tenants are also known to be more cooperative.

Image source: bizjournals.com

Appreciation of assets: In any investment, the goal is to maximize returns over time. Most real estate assets appreciate; however, commercial properties have shown to be capable of doing so at higher rates than not just other real estate types, but also other investment vehicles. Proper management and cost-effective improvements can further drive up the value of commercial real estate.

Protection against inflation: Inflation is a common occurrence. But rising prices consequently increases rental or leasing fees. Thus, commercial real estate can serve as a hedge against inflation.

Jon Queen’s expertise involves investment banking, trading, project development, commodities, and corporate finance. He currently works with Amatex Capital, a private equity firm which places emphasis in various asset classes that include commercial real estate. Visit this website to read more about Mr. Queen and his work.