Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: A LEADING CUSTOMER IN THE CUSTOMER’S INDUSTRY

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 ( No Examples)

3. Change the List Price Examples>>

4. Change the Optional Components of Price

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

   • Set a price cap Examples>>

   • Extend a payment term Examples>>

   • Provide a meet or release agreement Examples>>

<<Return to Choice 2