Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: COMPANY REVENUE IMPROVEMENT SEGMENT

CHIOCE 3: USE A COMPONENT OF PRICE TO REDUCE THE LOW PRICE SPREAD:

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

A. Change the Benefit Package (
No Examples)

B. Change the Basis of Charge Examples>>

C. Change the List Price
(No Examples)

D. Change the Optional Components of Price:

  • Waive, or make a one time or periodic payment, to cover some costs of the customer Examples>>

  • Provide a free, or heavily discounted, product from a third party Examples>>

<<Return to Choice 2

<<Directions to Reduce Price