To derive the entirity of the contract bid - shouldnt we add COGS and 15% discount to the bid value itself so that those costs are covered?
Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview
18
Im not certain why cost is deducted from revenue for the entirety of the contract bid.
2
2.4k

Be the first to answer!
Nobody has responded to this question yet.
Top answer

Ian
on Feb 18, 2021
Coach
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success
Hi Ukasha,
If I understand your question correctly, the answer is embedded in the case here:
- Typically, the client calculates profitability by deducting COGS & Overhead from the retail price.
- In such a scenario of bidding, the supplier needs to find out how much profit he can forfeit in order for the deal to remain attractive.
0 comments

Clara
on Feb 18, 2021
Coach
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Hello!
It´s stated in the case, here > "Typically, the client calculates profitability by deducting COGS & Overhead from the retail price"
Cheers,
Clara
Sign up for free to read all answers.
Sign up for free to read all answers.

Similar Questions
Most Popular Posts
Would a story about adapting to a new environment be appropriate for the Mckinsey Growth PEI
22
on Sep 24, 2025
Africa
6
300+

Top answer by
Pedro
Coach
Most Senior Coach @ Preplounge: Bain | EY-Parthenon | RB | Principal level interviewer | PEI Expert | 30% in October
6 Answers
300+ Views


+3
Does rejection from the McKinsey and Company case workshop hinder my ability to apply for the open roles in London, and will I be subject to the 12-month waiting period?
22
on Sep 25, 2025
UK
5
400+

Top answer by
Abhinav
Coach
Ex-BCG Consultant and a seasoned consulting coach, helping candidates from landing offer and beyond
5 Answers
400+ Views


+2
Hi I work as a private equity / M&A lawyer in London considering a shift to MBB. My attraction stems from the more commercial / strategic thinking I believe consulting will give me and I can later leverage that to either pivot to (i) industry; or (ii) private equity. Thoughts?
21
on Sep 25, 2025
UK
7
400+

Top answer by
Cristian
Coach
#1 Rated & Awarded McKinsey Coach | Top MBB Coach | Verifiable success rates
7 Answers
400+ Views


+4
Framework structure
21
on Sep 26, 2025
Global
9
600+

Top answer by
Marsel
Coach
Ex-Bain, BCG & Oliver Wyman | Consulting Interview Coach | 200+ Candidates Prepped for MBB/Tier 1 Offers
9 Answers
600+ Views


+6
Does every McKinsey interview reject get the Keep in Touch mail?
23
on Sep 27, 2025
USA
6
400+

Top answer by
Pedro
Coach
Most Senior Coach @ Preplounge: Bain | EY-Parthenon | RB | Principal level interviewer | PEI Expert | 30% in October
6 Answers
400+ Views


+3