whyzsm Reverse Costing
Metadata
- Name: reverse-costing
- Description: Competitor cost structure analysis
- Triggers: reverse costing, competitor cost, teardown, cost structure
Instructions
Analyze competitor cost structure for $ARGUMENTS to understand pricing dynamics.
Framework
Cost Structure Analysis
| Cost Component | Analysis Method |
|---|---|
| Materials | BOM estimation |
| Labor | Wage rates x hours |
| Overhead | Industry benchmarks |
| Margin | Price - cost |
Output
## Reverse Cost Analysis: [Product/Competitor]
### Cost Breakdown
| Component | Our Cost | Est. Competitor | Difference |
|-----------|----------|-----------------|------------|
| Materials | $50 | $45 | +$5 |
| Labor | $20 | $15 | +$5 |
| Overhead | $15 | $12 | +$3 |
| **Total Cost** | **$85** | **$72** | **+$13** |
### Margin Analysis
| Metric | Us | Competitor |
|--------|-----|------------|
| Price | $120 | $110 |
| Cost | $85 | $72 |
| Margin | $35 | $38 |
| Margin % | 29% | 35% |
### Key Findings
1. **Cost Gap**: Competitor is $13 cheaper to produce
2. **Margin Gap**: Despite lower price, competitor has higher margin
3. **Drivers**: Lower labor and material costs
### Recommendations
1. [Recommendation 1]
2. [Recommendation 2]
Tips
- Use industry benchmarks
- Validate with multiple sources
- Consider scale advantages