Would you launch the smaller pack?
Check the price a shopper can pay and the contribution the supplier earns.
The question
A fictional U.S. grocery supplier wants an entry pack that costs $3 or less at checkout. No additional charge applies at checkout.
| Weight (g) | Shopper price ($) | Supplier proceeds ($) | Variable cost ($) | |
|---|---|---|---|---|
| Regular | 400 | 5 | 3.1 | 1.9 |
| Trial | 200 | 2.75 | 1.75 | 1.1 |
Regular uses the actual shelf price. Trial uses the supplier’s suggested shelf price. The figures are per pack.
“Would you launch the trial pack? Explain your decision using the latest price.”
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A strong answer, step by step
Open each step in turn. This is one strong answer, not the only one.
Step 1: What job must the trial pack do?
What would you do here? Open the move you’d make.
Choose the pack with the lowest price per 100 g.
Tempting, but it misses something. The regular pack costs $5 at checkout.
Check the amount due at checkout first.
The strong move. The $3 limit applies to the whole pack.
Choose the pack with the lowest variable cost.
Tempting, but it misses something. Supplier cost does not establish what a shopper pays.
See how a strong candidate says it
“Give the shopper a pack they can buy with $3. I would also show the price per 100 g so the shopper can compare the two packs.”
Why it works: Total cash and price per 100 g answer different questions.
Step 2: What do the two packs earn?
What would you do here? Open the move you’d make.
Use shopper price less variable cost as supplier contribution.
Tempting, but it misses something. The supplier receives its net proceeds, not the shopper’s full price.
Use the $0.65 per pack to predict profit for the launch.
Tempting, but it misses something. Sales volume and the mix of regular and trial purchases are still unknown.
Compare shopper unit prices and supplier contribution per pack.
The strong move. This keeps the two prices and the supplier cost in the right calculations.
See how a strong candidate says it
“The regular pack costs $1.25 per 100 g and contributes $1.20 per pack. At the suggestion, the trial costs $1.38 per 100 g and contributes $0.65 per pack.”
Why it works: Contribution per pack uses supplier proceeds less variable cost. A total requires sales volume.
Step 3: Does the trial pack meet the brief?
The retailer confirms a $3.25 shelf price for the trial pack. Supplier proceeds and variable cost stay the same.
What would you do here? Open the move you’d make.
Hold the launch under the $3 requirement.
The strong move. The verified shopper price is above the limit.
Proceed because $2.75 is below the limit.
Tempting, but it misses something. The retailer’s price controls what the shopper pays in this case.
Add $0.50 to the supplier contribution.
Tempting, but it misses something. The retailer’s price rose by $0.50 from the suggestion. Supplier proceeds did not change.
See how a strong candidate says it
“At $3.25 on the shelf, the trial is $0.25 over the limit. It costs $1.63 per 100 g. Supplier contribution stays $0.65 per pack.”
Why it works: The confirmed shelf price changes what the shopper pays. The stated supplier terms stay fixed.
Step 4: What would you test next?
What would you do here? Open the move you’d make.
Track only trial volume after launch.
Tempting, but it misses something. Trial purchases can replace sales of the regular pack.
Test a viable offer and track both packs.
The strong move. This checks the affordability goal and the effect on contribution.
Launch because the supplier can still earn $0.65 per pack.
Tempting, but it misses something. Per-pack contribution does not solve the price barrier.
See how a strong candidate says it
“Work with the retailer on a pack or price that meets the $3 target. If it does, check the checkout price, repeat sales and contribution across both packs in a small test.”
Why it works: A pilot can show whether the trial reaches the intended shopper and adds sales across the range.
The answer, in short
- Decision
- Hold the trial under the $3 checkout limit.
- Because
- The confirmed shopper price is above the limit.
- What would change it
- A retailer-confirmed price or revised pack that can meet the limit.
Common traps
- Treating the suggested price as the price a shopper pays.
- Using the shopper price to calculate supplier contribution.
Check your answer
- What does the shopper pay?
- What does the supplier receive?
- Which price changed?
- What would you test across both packs?
Last reviewed Nov 11, 2026