Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: END OF CONTRACT SEGMENT

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

1. Change the Benefit Package
   (No Examples)

2. Change the Basis of Charge
   (No Examples)

3. Change the List Price Examples>>

4. Change the Optional Components of Price

   • Extend a discount in kind Examples>>

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

   • Provide a free, or heavily discounted, product from the company, other than the product on sale Examples>>

<<Return to Choice 2