Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: PERFORMANCE BELOW BRAND AVERAGE

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

  1. Change the Benefit Package

  2. Change the Basis of Charge ( No Examples)

  3. Change the List Price Examples>>

  4. Change the Optional Components of Price

    • Provide a rebate Examples>>

    • Extend a discount in kind Examples>>

    • Waive fees or make a one time or periodic payment Examples>>

    • Provide a free, or heavily discounted, product from the company, other than the product on sale Examples>>

    • Extend a payment term Examples>>

    • Offer a Put Examples>>

<<Return to Choice 2