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Compact case
Case
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Reference no. 9-594-024
Subject category: Marketing
Published by: Harvard Business Publishing
Originally published in: 1993
Version: 17 June 1994
Length: 2 pages
Data source: Generalised experience

Abstract

In this hypothetical case, 21-Speed Gizmos, Inc, a manufacturer of electronic bicycle components for the serious cyclist, must decide what price to charge for a new product. Describes the product and includes cost and demand information available for making the pricing decision. The teaching purpose is to illustrate: (1) the fundamentals of developing a pro forma income statement with the help of a spreadsheet software tool; and (2) to introduce some very basic pricing concepts.

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Abstract

In this hypothetical case, 21-Speed Gizmos, Inc, a manufacturer of electronic bicycle components for the serious cyclist, must decide what price to charge for a new product. Describes the product and includes cost and demand information available for making the pricing decision. The teaching purpose is to illustrate: (1) the fundamentals of developing a pro forma income statement with the help of a spreadsheet software tool; and (2) to introduce some very basic pricing concepts.

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