Hi,
can someone help me and explain the last calculation? How do I get the number € 1,250 and € 1,000?
"80% of customers have to buy the warranty – average profit from the service is € 1,250 and the price decline to be compensated is € 1,000."
Thanks a lot!
Hello,
I will try to make it clearer for you:
Let's call with X the percentage of the total customer base (CB) that subscribe a wanrranty. In order to keep the same profit margin for each vehicle sold we can write:
Does it make sense?
Feel free to text me for any further explanation needed.
Luca
Company case by
