033 Cost-Benefit

The value of a thing is a function of its costs of acquisition and use versus the benefits it provides.

• Cost-benefit does not just refer to finances. It refers to all costs and benefits associated with a design, including physical costs (e.g., effort), emotional costs (e.g., frustration), and social costs (e.g., status).

• If the costs associated with a design outweigh the benefits, the design is poor. If the benefits outweigh the costs, the design is good.

• A common misconception is that adding features increases product value. This is only correct when the benefits provided by new features outweigh the costs of increased complexity. If they do not, adding features decreases product value.

• Consider the cost-benefit principle in all aspects of design. Do not make design decisions based on costs or benefits alone.

See Also 80/20 Rule • Feature Creep • IKEA Effect Performance Load • Veblen Effect

The hassles (i.e., cost) of transporting a kayak are high, which reduces the popularity of kayaking. Making the kayak more portable reduces this cost, making kayaking more appealing.