What You'll Learn
- Calculate precise breakeven cost-plus pricing floors.
- Model Competitor-Indexed Pricing adjusters.
- Quantify Economic Value to the Customer (EVC) to capture maximum margin.
Lesson Overview
Pricing is the highest-leverage profit driver in business. Master the quantitative calculations behind Cost-Plus Floor, Competitor Benchmarks, and Economic Value to the Customer (EVC) ceilings.
Your interviewer says: "Our client has engineered a revolutionary agricultural drone that automates pesticide spraying. It costs $2,000 to manufacture. It saves large-scale farms $10,000 per year in labor costs and reduces pesticide waste by 30% (saving $5,000/year). How should we price this product?"
Why This Matters for Consulting Interviews
MBB firms expect candidates to deconstruct pricing into a three-part margin corridor, showing comfort with value-based algebra.
Prerequisites
- Pricing Strategy
- Triangulation Sizing
Start This Lesson on PrepPartnr
← Back to preppartnr —
Start practicing with AI →