P
ProHub
English 简体中文 繁體中文
Hard Pricing Strategy Profitability Product Bundling

Diabetes Device

#Medical #Healthcare #Medical Devices
ProHub Comment

This is a quantitative pricing optimization case requiring candidates to apply price elasticity analysis combined with bundling strategy evaluation. The case tests ability to structure a pricing problem using gross margin calculations, compare discrete pricing options, and recognize complementary product dynamics where bundling creates additional value.

Estimated Time 15 minutes
Difficulty Hard
Source Cornell
50 / 100
Our client is a manufacturer of medical devices used to treat chronic diseases. They recently launched a new device for treating diabetic patients. The device has two components – an injector and a disposable cartridge. They would like to know how they should price and sell these products in order to maximize profit. What advice would you give them?

Clarifying Information

  1. Injector: $40/unit
  2. Disposable cartridge: $20/unit
  3. Both the injector and cartridge are sold directly to patients with a prescription
  4. Injector can be reused up to 20 times but cartridges are one-time use
  5. Acceptance rate is defined as the percentage of customers who are willing to pay that specific price for the product