Reverse Costing

Deconstruct competitor products to understand cost structure. Use for competitive pricing and cost analysis.

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