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.

B. Reduce the customer's spending on people, purchases or capital costs the customer uses with the product itself

Purchase costs used with the product itself
Reduce purchases of items used with the product itself

Speed process to reduce need for purchases

No. SIC Year Note
1 100 1987 Seeds of Tomorrow claims it has an affordable hybrid cotton. One variety matures 2-3 weeks faster than regular plants. Farmers pay more for the seeds, but save on irrigation & pesticide costs.
2 3571 2001 IBM will step up competition with Sun Microsystems and Hewlett-Packard in the Unix operated server market. The market is dominated by Sun Microsystems. IBM introduced the Regatta, a server that utilizes the Power4 Microprocessor which features two processors on a single chip of silicon. The machines are priced between $450,000 and $1.8 million. These computers are geared for company databases, websites or for scientists and engineers for high-speed calculations. Because of the processing speed, a customer may be able to buy half as many software licenses as they would with an older machines, pleasing users but creating concern with software companies.

<< Return to Use Steps