Diabetes Device
Practice this advanced pricing case interview question in the Healthcare sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
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
35 minutes
Difficulty
Hard
Source
Cornell
20
/ 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
- Injector: $40/unit
- Disposable cartridge: $20/unit
- Both the injector and cartridge are sold directly to patients with a prescription
- Injector can be reused up to 20 times but cartridges are one-time use
- Acceptance rate is defined as the percentage of customers who are willing to pay that specific price for the product