Cost Gradients

Cost Gradients are the amount of money it costs to provide each unit of increased performance in a value dimension. For example if the manufacturer of plastic spoons wanted to improve the performance of the “Durability” value dimension they could use thicker plastic which has a cost per gram to provide.

Nobel laureate Dr. Milton Freidman once said “There is no such thing as a free lunch.

Cost gradients describe how much more it costs to get a better lunch.

Posted in: Glossary