Bright Idea

pricing

What this case is about

Your client is Surya electrical company which has invented a new light bulb that lasts for over 500 years without burning out. The marketing director asks you how to price this revolutionary product. They want to maximize profits and have no existing competition for this patented bulb. How would you advise them?

Objective

Determine an appropriate pricing strategy for a radically new long-lasting light bulb that meets the profit objectives of the company.

Skills this case tests

Structuring the problem
Working the numbers
Judgement and recommendation