TWENTY

The Value-Engineering Principle

Value engineering is a simple method of evaluating the usefulness of a new product by asking some key questions:

1. What is the product or service? Describe it through the mind of the consumer.

2. What does it do? Exactly? How does it improve the life or work of the customer?

3. What does it cost?

4. What else will do the same job?

5. What does that alternative cost?

Human beings are often described as “homo economicus,” or economic man (or woman). We always seek to get the very most at the lowest possible cost, all things considered. If you have a product or a service that is similar to that of others in the hearts and minds of your customers, your price has to be equivalent to or lower than your competitors ...

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