Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: REWARD CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: SEGMENT USING BENEFICIAL THIRD PARTY PRODUCT

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

   • Provide a rebate Examples>>

   • Offer a coupon Examples>>

   • Extend a discount in kind Examples>>

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

   • Extend a payment term Examples>>

<<Return to Choice 2