Interviewer view · keep this screen to yourself
What should fleet software charge in Saudi Arabia?
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
A fictional software company sells route planning software to truck fleets in Saudi Arabia. The next best option is a rival product at SAR 150 per truck per month. A truck uses SAR 8,000 of fuel a month, and our software cuts fuel by 3 percent more than the rival does. Switching needs training and set-up that cost the fleet the equivalent of SAR 30 per truck per month in the first year. Our cost to serve one truck is SAR 40 a month. What is the most a fleet should pay, and what price makes sense? (Figures are illustrative.)
2. Answers to clarifying questions
This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.
3. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- EVC = price of the next best option + extra value created minus extra costs to the customer
- Next best option: rival at SAR 150
- Key: Extra value: fuel saved beyond the rival
- Extra costs: training and set-up
- Price between our cost and EVC
4. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: Extra fuel saved
What a strong candidate does: 3 percent of SAR 8,000 a month.
Extra fuel saved per truck (SAR per month): 8,000 × 0.03 = 240
Step 2: Net extra value
What a strong candidate does: Fuel saved minus the switching cost.
Net extra value per truck (SAR per month): 240 - 30 = 210
Step 3: Economic value to the customer
What a strong candidate does: The rival price plus the net extra value.
EVC per truck (SAR per month): 150 + 210 = 360
Step 4: Customer gain at SAR 250
What a strong candidate does: If we price at SAR 250, how much better off is the fleet than with the rival?
Customer gain at SAR 250 (SAR per truck per month): 360 - 250 = 110
Step 5: Our margin at SAR 250
What a strong candidate does: Price minus our cost to serve.
Our contribution at SAR 250 (SAR per truck per month): 250 - 40 = 210
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
The company should price at about SAR 250 per truck per month, well above the rival's SAR 150 and well below the SAR 360 ceiling. First, at SAR 250 the fleet is still SAR 110 a month better off than with the rival, a clear reason to switch. Second, the company keeps SAR 210 of contribution per truck. Pricing at its cost plus a markup, say SAR 60, would leave almost all of the value with the customer. The risk is that fleets doubt the 3 percent fuel claim, so as a next step offer a three-month trial on part of the fleet that measures fuel use before and after.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?
Total
0 out of 25
Score all five criteria to see the band and the feedback template.