Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: SEGMENTS BUYING MORE OF THE SAME PRODUCT

CHOICE 3 COMPONENT: USE PRICE COMPONENT TO LIMIT THE SPREAD OF THE LOW PRICE

1. Change the Benefit Package Examples>>
2. Change the Basis of Charge

   • Stated time – This basis charges the buyer by unit of time Examples>>

   • Unit of supplier cost – Charge on the basis of a unit of the seller’s cost Examples>>

   • Combination of bases – Combine bases in order to use two bases in the variable charge to the buyer Examples>>

   • Package – Create a package of an item and sell by the package Examples>>

   • Unit of currency – Charge per unit of currency involved in the transaction Examples>>

   • Package of related items – Charge by a unit composed of several items usually used together Examples>>

3. Change the List Price
   

   (No 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 a third party Examples>>

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

   • Set a price cap Examples>>

   • Offer a Call Examples>>

   • Provide a meet or release agreement Examples>>

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