Luxury by the Month
pricing
India-specific
Set in Mumbai, India; the figures and context are India’s.What this case is about
Your client is a car rental agency in Mumbai that has recently purchased a Mercedes E-Class with a market price of Rs. 50 lakh. The CEO wants to know what monthly rental to charge. How would you determine an appropriate price and whether the offer is viable?
Objective
Establish the monthly cost-recovery price, compare it with the value customers receive from alternatives, and recommend whether to proceed with monthly rentals or pursue another model.
Skills this case tests
Structuring the problem
Working the numbers
Judgement and recommendation