The Aim of Affordability is based on those three basic elements;  Value, Customer, Cost

The relationship of Value and Customer depends on Requirements and Delivery.  Customer Requirements define how the Value Delivery needs to take place.

The relationship of Customer and Cost depends on Price and Purchase.  Product/Service Price determines Purchase Amount that generates Customer provided Revenue.

The Relationship of Cost and Value depends on Resources and Need.  The Needs to Deliver Value determines the Resources necessary that defines Expense.

When the AIM is in balance, profitability, success and growth occurs.

When the AIM is out of balance, debt, failure and reduction of market share ensues.

Three Points

1. Deliver Value in accordance and conformance with Customer Requirements
2. Price Products/Services that the Customer is willing to pay for and provide Revenue
3. Institute Resources and Methods aligned with Customer defined Value at an Expense that returns Profit.

Good Luck … the book “Affordability” might help … buy one.