Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: OTHER INDIVIDUAL CUSTOMER 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 Examples>>

3. Change the List Price Examples>>

4. Change the Optional Components of Price

   • Provide a rebate Examples>>

   • Waive fees or make a one time or periodic payment Examples>>

   • Set a price cap Examples>>

<<Return to Choice 2