Value can be added, substracted, multiplied, divided and created exponentially both naturally and artificially.

Rolls-Royce have managed to convince their clients to pay 1000 times more than an ordinary car. Through business we know, fixed costs have a upper ceiling once reached it stays constant. Also the material cost follow the same principles. Now R&D is included within the fixed costs, we can figure out that fixed costs & material costs etc = Cost of Revenue are moving(up & down) within 13.5 billion to 15.5 billion since 2020.

Second example could be of most disliked substance of 1960s, the plastic has superceded the crown metals due to its ease of availabilty, processing, automation advancement, cost of oil refining etc. All the metal pipes which used to be the sewage pipes and water pipes in the houses are now plastic pipes and story never ends with its use in clothing as Polyester. Similary, the seeds are engineered to yield out of season and higher multiplying their yield within that year by many times.

These applications can be practised in day to day business to not only increase the value created for your business interms of profits but also for customer in terms of useabilty, product life, satisfaction, safety etc. For instance, milking the cow through machines and referigerated storage has created a value for farmers and consumer with price stabilty exceeding a decade. Plus, an option of skimmed to semi-skimmed product is also value creation both for the farmer and the consumer with consumer satisfied with its need and farmer selling by product creme. Last but not the least, through packaging modification and creating a niche market for milk pots, same amount of milk 1.44 litre (12ml x 120) can be sold for 6 times the retail price

Similarly we assist our clients to create value through the models we are equipped with. Book a session for consultation

But the company can yet sell its car for $20m. To understand it well, lets say everyone’s buying car their buying power boosts up for a day, and all order Rolls-Royce made car, then the profit rolls-royce will book will be in trillions(exponentially) but cost of revenue will still be in billions (as cost of revenue is not directly propotional with profit)