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

Capital costs

Reduce required inventory

No. SIC Year Note
1 3669 2002 Radio-frequency identification (RFID) technology, a new high-tech method of product identification, has recently been spreading into more high-volume retail environments. However, it has not yet reached lower-valued goods. The cost of printing bar codes can run between one and ten cents while RFID tags can be anywhere from 30 cents to several dollars. However, the cost of the RFID technology is expect to drop to 5 cents a tag by 2005.
2 4213 2004 Ford's reliance on UPS has cut the time it takes autos to arrive at dealer lots by 40%, to 10 days on average. That saves Ford millions in working capital each year and makes it easy for its 6,500 dealers to track down the models most in demand.

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