Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: STD LEADER VS TOP TIER STD LEADER SEGMENT

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

1. Change the Benefit Package Examples>>

2. Change the Basis of Charge Examples>>

3. Change the List Price Examples>>

4. Change the Optional Components of Price

   • Offer a coupon Examples>>

   • Extend a discount in kind Examples>>

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

   • Offer a trade-in allowance Examples>>

   • Provide a sample of the product Examples>>

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

   • Set a price cap Examples>>

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