Casebook ~ Strategy ~ Coursework / pricing strategy

Pricing an EV two-wheeler subscription

A two-wheeler EV business was considering a subscription offer. The challenge was to find a price and package customers would choose that could also support the service economics.

Context Coursework / pricing strategy
My role [Customer research & pricing model]
Timeline [X weeks]
Result [Pricing recommendation / outcome]
The answer, up front

Price the offer around customer value — and viable economics.

[₹X / month] indicative target subscription price
[X%] contribution at target utilisation
[N] customer segments with distinct needs
01 · Frame

Find the real question

Situation. The company is exploring a monthly plan that could bundle vehicle access with some combination of battery, maintenance and support.

Complication. Customers compare the subscription with owning a petrol two-wheeler, financing an EV and using other mobility options. A low headline price may not cover asset, service and utilisation costs.

“Which customer should we target first, what should the subscription include, and at what price can the offer work?”

A good answer had to show:
~Understand the alternatives and total monthly cost customers compare.
~Test willingness to pay by segment and package, not price in isolation.
~Ensure contribution holds across utilisation, asset life and service assumptions.
02 · Structure

Connect customer value to the cost of serving it

I linked three decisions: who has the strongest reason to subscribe, what bundle solves that need, and what price clears both customer and company thresholds.

What subscription should we launch?
Which customer values it?Commute and usage pattern
Current mobility spend
Ownership barriers
What belongs in the plan?Vehicle and battery access
Service and maintenance
Deposit and flexibility
Can the price work?Willingness to pay
Utilisation and asset life
Contribution by package
Hypotheses I set out to test
H1High-usage commuters may value cost certainty and service more than a low entry price.
H2A clear good-better-best package can make the trade-off between flexibility and monthly cost easier to understand.
H3Utilisation, battery and maintenance costs are the largest drivers of sustainable price floors.
03 · Analyse

Find the package customers value and the business can serve

3.1

Map alternatives and customer jobs

Compared monthly ownership cost and customer effort across petrol, financed EV and subscription alternatives for distinct usage segments.

[Visual: segment needs vs current alternatives]

Insight: [Segment] has the clearest gap between current mobility cost and the value of a bundled plan.

3.2

Test package and price response

Designed concept routes that varied price, deposit, flexibility and included services; assessed preference and purchase intent by segment.

[Visual: choice share by package and price]

Insight: [Package] wins on [value driver]; [price point] is the key point to validate in a live test.

3.3

Check contribution and sensitivity

Modelled revenue against vehicle cost, financing, battery, service, utilisation and residual value across base and downside cases.

[Visual: contribution by utilisation and price]

Insight: the plan reaches the target only above [utilisation] or with [package / cost] adjustment.

Set a customer-tested price inside the viable range

The launch price should sit between the customer’s willingness-to-pay ceiling and the company’s fully loaded price floor. Validate both with stated and observed behaviour.

Package / measureEntryCoreFlex
Monthly price[₹X][₹X][₹X]
Included service[Base][Plus][Full]
Deposit / commitment[₹X / term][₹X / term][₹X / term]
Contribution at base use[₹X][₹X][₹X]
Target segment[Segment][Segment][Segment]
04 · Recommend

Launch one clear core plan with a measured price test

Lead with the package that best matches [priority segment] and has a contribution path under conservative utilisation. Keep the plan easy to compare with ownership, test [price range] in a bounded market, and add flexibility tiers only when customer evidence supports them.

Weeks 0–3ValidateConfirm segment needs, alternative costs and price floor with customer and cost data.
Weeks 3–6TestRun package and price tests with [N] prospects; check comprehension and intent.
Weeks 6–12PilotLaunch in [market / cohort]; track conversion, utilisation, service cost and early retention.
Risks, and how to manage them
Stated intent overpredicts sign-upsPair research with a live offer or refundable reservation test.
Utilisation is below planUse a conservative base case and cap initial asset deployment.
Bundle is hard to compareShow inclusions, exclusions and total monthly cost in plain language.
05 · Looking back

What I would keep, and what I would change

What worked

[What connected willingness-to-pay evidence to a realistic cost floor.]

What I would do differently

[What behavioural test or sensitivity you would add before launch.]

Sample case page: replace bracketed values with verified project details before publishing.

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