Purchasing Your Coffee Maker
#Real Life, Retail
#Retail
Practice this beginner-friendly make vs. buy case interview question in the Real Life, Retail sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
ProHub Comment
This is an introductory case designed to teach candidates how to structure a personal consumer decision using consulting frameworks. The case combines qualitative analysis (Make vs. Buy framework with Costs, Benefits, and Risks) with a straightforward quantitative breakeven calculation, making it ideal for teaching how to synthesize different analytical approaches in a practical, relatable scenario.
Estimated Time
16 minutes
Difficulty
Easy
Source
Pennsylvania
10
/ 100
Your friend, Matt, is considering buying a coffee maker. He has a $200 maximum budget but as a new Penn grad, he would be happy to spend less than that. He has retained your consulting skills to help him make this decision.
Clarifying Information
- Matt will be an investment banking analyst and has heard rumors of long hours and late nights. He feels that he will need the caffeine to get through the dreaded first year.
- Matt’s maximum budget is $200. Thus, many of the fancy, barista style coffee makers are out of his budget.
- Matt hopes to be able to make standard, drip cups of coffee with his coffee maker. He will occasionally order a Latte.
- After graduation, Matt’s mom gave him a coupon to Bed Bath & Beyond. Using her 20% off coupon, Matt could purchase a Keurig for $100.
- Cost of Keurig: $100
- Cost of Daily K-Cup, Milk & Splenda: $1
- Cost of Daily Starbucks Coffee: $3
- Matt drinks 5 coffees per week