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Distribution is value as well - for example, it's quite clear (and traditional) that wholesalers and retailers add value to product, i.e., a shirt in a store near you where you can try it on is worth much more than the exact same shirt in a container coming out of the factory. But technically, it's exactly the same as simply reselling something at a profit.

In essence, the unstated assumption is that if you bought it at $1 then it had a value of $1; and if you sell it at $2 then you added value, and we don't need to know how that value was added. Did you improve the item itself? Did you move the item where it was needed more? Did you offer it to customers who weren't served by others? Did you advertise&market the item to make it more attractive? These all are valid means of adding value.

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