At the service center where I work, we process steel for customers in various ways. For example, we can sell a steel coil to customers or have value-added processes. Every process we can do for the customer instead of them doing it in-house or sending it to another processor adds value to the coil. For example, we purchase a coil from the mill at $50 a hundredweight from the mill. If we were to sell that coil to the customer, we sell it at $60 a hundredweight as is making a 20% profit. We can then apply a special coating on the coil that prevents rust for an additional $1.75 a hundred weight for $1.00 a hundredweight. We can then cut the coil into specific widths for the customer for an additional $1.75 a hundredweight at the cost of $1.00 a hundredweight. We can then process these smaller width coils into sheets at the best length for optimum efficiency for the customer to make their parts for an additional $2.00 a hundredweight at a $1.00 cost. We now have a final sell price to the customer of $65.00, and the customer will pick up the material from us, so we do not have to add in shipping and gas surcharges. The company has put in $53.00 a hundredweight, providing a 23% profit on this total sale ($12.00 a hundredweight). These value-added processes made the company 8.3% profit of the 23% ($5.00 a hundredweight) with minimal cost.