Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: LOW DEMAND PERIOD SEGMENT

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

For a complete explanation of this process, or details of these steps, please review the Directions to Reduce Price to Improve Revenues and Margins.

A. Change the Benefit Package Examples>>

B. Change the Basis of Charge Examples>>

C. Change the List Price Examples>>

D. Change the Optional Components of Price

  • Extend a discount in kind Examples>>

  • Waive, or make a one time or periodic payment, to cover some costs of the customer Examples>>

  • Provide a free, or heavily discounted, product from a third party Examples>>

  • Extend a payment term Examples>>

  • Offer a Put Examples>>

  • Offer a Call Examples>>

<<Return to Choice 2

<<Directions to Reduce Price