What is the difference between added value and the profit of a business? explain clearly

Added value in marketing and management usually refers to
the monetary value of the increase in the benefit or value of a product to the customer,
as a result of operations performed by seller on the inputs used for making the product
available. This may be expressed in form of a formula
as:

Added Value = (Total benefit/value that a customer can
derive) - (Cost  incurred by seller)

Customers buy a
product because they derive more value from it than the price paid for it. Therefore, a
company must sell its product at a price that is lower than the value derived from the
customer. The selling price must also be higher than the cost of the product. Otherwise
the company will not be able to make any profit.

The profit
made by the company is equal to price of the product less the cost incurred in making
it. For a company to be able to sell its product and make profit the value added must
always be more than the profit, so that customer get more value from the products they
purchase than the price paid, and the manufacturer or the seller gets higher price than
the cost incurred. In this way both buyer and seller share between them the total amount
of added value.