In financial terms, it is the difference between the selling price of a product or service and the cost of bought-in materials and / or components used to produce / provide it. For example, the materials required to produce a table, ie the oak, glue, bolts, etc may only cost, say £85, but the price at which the table is sold may be £300. The value added would, therefore, be £215 (£300 – £85). Not all of this is profit kept by the business / owners. Some may be paid to employees as wages, some to suppliers of materials, gas and electricity, some to the bank as interest on any loans, some to shareholders as a return on their investment, and some to the government as tax, for example. For the consumer, the value added is the benefit gained from not having to produce or do something for oneself, such as, make bread, clothes, furniture, build a house, or cut hair. It is the time saved / freed to do other more enjoyable things, or increased self esteem / confidence gained from looking or feeling healthy.