Learn Pricing Case Interviews in Under 10 Minutes

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8 ай бұрын

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Pricing cases are one of the most common types of case interviews. Learn the three different ways to price a product and the seven steps to solve any pricing case interview
Learn how to solve other types of cases:
Profitability cases: • Learn Profitability Ca...
M&A cases: • Learn M&A Case Intervi...
Market sizing: • Learn Consulting Marke...

Пікірлер: 9

@HackingtheCaseInterview 8 ай бұрын

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@TheDimiKid 8 ай бұрын

As always, a fantastic overview and guideline for pricing cases! One clarification on your iPhone example at the beginning: You are mentioning that if the company wants to make 20% profit margin (PM) and the cost of the phone is 200$, then the price should be set to 240$. However, I believe it actually should be 250$ (not 240$) in order to achieve 20% PM. PM=(price - cost)/price = (250$ - 200$)/250$=50/250=1/5 which corresponds to 20%. Please, correct me if I am wrong. Anyways, thanks for your content!

@HackingtheCaseInterview 8 ай бұрын

You are right! Small typo there

@gursimarsahni8157 6 ай бұрын

how? the phone should be priced at $240 to achieve a 20% profit margin on the cost of production. since when is 20% profit on 200 = 250 ?

@shubhamshukla4147 5 ай бұрын

@@gursimarsahni8157 Profit margin is calculated wrt to Revenue and not Cost. In simpler terms, Profit margin = (SP-CP)/CP

@MrBodahana 27 күн бұрын

@@gursimarsahni8157 The concept of profit margin involves the product final price and the cost. If you consider a final price of $240 it would be composed of $83.33% of costs ($200) and 16.66% of profit ($20). Therefore, the final price should be $250, so that 80% are costs and 20% is the profit margin.