215Product Development andSystems Engineering
to ergonomics. Sharp corners, unnecessary vibrations, risk of electrocution,
etc., should be minimized in ergonomic product design.
7.4.5 Product Pricing: Cost-Plus and Target Costing
A product needs to be priced in such a way that it maximizes prot margins
and at the same time does not drive away the customer. Product pricing is the
process of determining what the nal price to the customer is going to be, given
a prot margin or how much money should be expended in making the product
given the prot margin. This is easier said than done. For most products initial
development cost is large. As a result, it is hard to determine the unit price of
the product to the customer because not only is t ...