Brainstorming Ideas: Final Customer Purchasing from the Producer of the Product

Final customer buying from a product producer. Final or end-user customers incur four cost steps in connection with the product sold by a 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.

A. Knowledge

B.
Resources: Reduce resources required for the use of the product

1. Money – Reduce the money the customer uses with the product

   1. REDUCE THE LEVEL OF PAYMENT FOR USE OF THE PRODUCT

      1. Warnings and advice Examples>>

      2. Reduce price for a comparable product

         1. Package functions for lower cost per function used Examples>>

         2. Create price tiers Examples>>

         3. Lead prices down Examples>>

         4. Reduce price of component Examples>>

      3. Reduce Performance benefits

         1. Reduce Function benefits

            1. Reduce options Examples>>

            2. Reduce size, speed or power Examples>>

            3. Reduce taste Examples>>

            4. Reduce choice Examples>>

         2. Reduce Convenience benefits Examples>>

         3. Reduce both Function and Convenience benefits

            1. Produce inexpensive products with little known brand name Examples>>

            2. Produce inexpensive products and increase customer time to use or acquire the product Examples>>

         4. Reduce Reliability Examples>>

      4. Substitute lower cost benefits for high cost benefits Examples>>

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