Value Chain

Is it about adjusting for increased value? Or is it simply about covering costs?

— Ashe Ash, Farmer

Overview

The concept can be summed as this: the more a thing is added to or refined, the more valuable it becomes. It is a concept that has been slowly developing among the many business guilds of the world. The two guilds with the most extensive application of the concept are the Mabara Guild and the Union of the Cardinal Directions.

Illustration

Take wine. It starts off as grapes, which while having a value all their own are not a sought after as wine. Once the grapes have been processed into the kind of drink everyone craves then it has more value. Further value can be had in pleasing packaging. Even more value in a restaurant setting as part of an expensive five-course meal. To put this another way, the chain of processes starting from the planting of grape seeds all the way through to the serving of a finished wine bottle is the value chain.

Utility of Concept

Even a rudimentary understanding of this concept can help one better understand how things are priced as well as to appreciate the effort that goes into its making and delivery. It can also help to understand which items might be overpriced. If you happen to be one running a guild all your own, then a comprehensive understanding of the value chain can be invaluable in managing the business.

Note(s) from the Archivists:

Are you sure this article has it right? I've overheard guild members talk about this and it seems to be quite complicated in practice. - Archivist Theta
I think we have it as right as anyone else could. Besides, how many of our readers do you expect to be conducting guild business? - Archivist Enna
An article can hardly compete with a book. - Archivist Taenya