THE PRICE-LED COSTING REVOLUTION
The lesson being taught by Henry Ford, Toyota, and Lee Iacocca with the Mustang, among the other examples cited, is that a company needs to start with value,then determine price, which finally dictates the costs that can be profitably incurred to produce a good or service desired by customers.This value chain would be obvious to a nineteenth-century marginalist economist,as it certainly was to Henry Ford and Toyota early in the twentieth century,and some enlightened companies today, such as Disney. Consider this tribute