Pricing on Purpose organizations do not stop there. They are constantly asking. “How can we increase the value of what we provide.” The $2,368 sticker price was not taken as a ceiling that could never be raised by Iacocca and his marketing team. By continuously innovating the Mustang more features, bigger engines, the Shelby they viewed the price as a number that could be managed by adding more value for different segments of customers. When you reflect upon the subjective Theory of Value chain illustrated above, it is clear that cost and price are the easiest numbers to calculate. It is the value because it is subjective that poses the conundrum, but is essential to understand if a company is going to constantly increase the value proposition to its customers. By establishing the price first, Iacocca was bucking the conventional wisdom in post World War II business organizations of “build it and they will come.” It was a radical way to establish a price. But as we have learned, radical is Latin for “getting back to the root,” and the fact is that price led costing was historically more ubiquitous than we might, at first glance, have thought