--- title: "Meaning & Key Takeaway of: \"Value added\" is a meaningless concept…" description: "\"\"Value added\" is a meaningless concept for a retail business , for a bank, for a life insurance company, and for any other business which is not primar..." image: "https://sms4smile.com/quotes/i/960/peter-drucker-393_business_value-added-is-a-meaningless-concept-for_2469715.png" --- # "Value added" is a meaningless concept for a retail… ![“"Value added" is a meaningless concept for a retail business , for a bank, for a life insurance company, and for any other business which is not primarily engaged in manufacturing.” quote by Peter Drucker](https://sms4smile.com/quotes/i/960/peter-drucker-393_business_value-added-is-a-meaningless-concept-for_2469715.png) [Download](https://sms4smile.com/quotes/i/960/peter-drucker-393_business_value-added-is-a-meaningless-concept-for_2469715.png) [Open image](https://sms4smile.com/quotes/i/960/peter-drucker-393_business_value-added-is-a-meaningless-concept-for_2469715.png) > “"Value added" is a meaningless concept for a retail business , for a bank, for a life insurance company, and for any other business which is not primarily engaged in manufacturing.” [Peter Drucker](https://sms4smile.com/quotes/author/peter-drucker/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Value added is a manufacturing term that doesn’t translate well to service‑oriented firms where value is created through relationships and experiences. **In simple terms:** Value added fits manufacturing, not service businesses. Key Takeaway Focus on customer experience and relationship value. Themes service value creation industry differences Mood analytical critical Type business strategic When to use this quote - banking - insurance - retail - consulting Key Concepts economics business strategy customer centricity Questions to Reflect On - How can a service firm measure value without tangible products? - What metrics replace “value added” in banking? A Different Perspective Service firms must define value differently than manufacturers. ★ ★ ★ ★ ★ No ratings yet [Business](https://sms4smile.com/quotes/about/business/) [Company](https://sms4smile.com/quotes/about/company/) [Life](https://sms4smile.com/quotes/about/life/) [Retail](https://sms4smile.com/quotes/about/retail/) [Retail business](https://sms4smile.com/quotes/about/retail-business/) [Value](https://sms4smile.com/quotes/about/value/) [Values](https://sms4smile.com/quotes/about/values/) ## Related quotes > [If there's no game, isn't winning a pretty meaningless concept?](https://sms4smile.com/quotes/lois-mcmaster-bujold/if-there-s-no-game-isn-t-winning-a-pretty-meaningless-concept/) [Lois McMaster Bujold](https://sms4smile.com/quotes/author/lois-mcmaster-bujold/) > [You can compare the retail business to basketball. 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