Final Customer Purchasing from the Product Producer

Use Steps: Use steps include all the customer's value added activities or the consumption of the product itself. These steps include all the costs the customer incurs in employing the product in its intended use.

Resources: Reduce resources required for the use of the product

Money: Reduce the money the customer uses with the product. For more ideas on using pricing, please see the Improve/Pricing section of StrategyStreet.

A. Reduce the level of payment for use of the product

Warnings and advice

No. SIC Year Note
1 2043 1994 Kellogg's CEO says, 'There are 140 brands of cereal bought by very loyal consumers. Some of the fastest-growing brands are the most expensive, so it's not all about price.'
2 7372 1998 Borland International Inc. diversified from programming languages and other tools to mainstream personal computer programs such as databases and spreadsheets. In doing so the company collided with Microsoft, which thus responded with drastic price reductions and bundling arrangements. The company sales which peaked at $482.5 million in 1991, fell to $174 million for the most recent 12 months.

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