StrategyStreet / Improve / Pricing / Innovation Ideas - Reduce Price / Raise Price to Improve Revenues and Margins / Raise Price, Raise Performance and Cost by Smaller Amount




Raise Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT

CHOICE 2: ISOLATE SEGMENTS WHO MUST PAY THE PRICE INCREASE

For a complete explanation of this process, or details of these steps, please review the Directions to Raise Price to Improve Revenues and Margins.

  1. All segments (no examples)
  2. Customer segments who are captive to the company due to a unique Performance benefit
  3. Segments of customers where competitors cannot counter the company's change in Value
    • Customer segments who require a specific product system component Choice 3>>
    • Customer segments who use a service or purchase a product on a specific occasion Choice 3>>
  4. Segments of customers where competitors are likely to be unwilling to counter the company's change in Value
    • Customer segments who purchase products with higher Cost components Choice 3>>
    • Customer segments with high servicing costs Choice 3>>
    • Customer segments making higher than average use of capacity Choice 3>>
    • Customer segments purchasing during a period of unbalanced supply and demand Choice 3>>
    • Segments served by competitors likely to follow the Price increase Choice 3>>

<<Return to Choice 1

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