Cheat sheet
Compare willingness to pay, variable costs, volume and competitor alternatives.
What to check first
Calculate contribution at both prices before fixed costs and test demand assumptions.
How to make the call
Pilot the new price and monitor conversion, returns and repeat purchase.
OpenStax · Pricing products and services · further reading for pricing & product
Indian practice case
Fictional scenario
An Indore cookware seller charges ₹800 with ₹500 variable cost and sells 1,000 monthly. At ₹900 it expects 800 units.
Reveal the step-by-step solution
- Diagnose the problem.
Calculate contribution at both prices before fixed costs and test demand assumptions.
- Work through the evidence.
The options yield ₹3 lakh versus ₹3.2 lakh. The new price needs 750 units to match baseline contribution.
- Recommend and validate.
Pilot the new price and monitor conversion, returns and repeat purchase.
More Indian cases
Interview question
How would you use pricing to make the decision in this case? Explain which data you need first and what would change your recommendation.
See what a strong answer includes
The options yield ₹3 lakh versus ₹3.2 lakh. The new price needs 750 units to match baseline contribution. Pilot the new price and monitor conversion, returns and repeat purchase.