Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: LOCATION SEGMENT

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

For a complete explanation of this process, or details of these steps, please review the Directions to Reduce Price to Improve Revenues and Margins.

Locations where the company is strong due to high market share:

1. Change the Benefit Package Examples>>

2. Change the Basis of Charge Examples>>

3. Change the List Price Examples>>

4. Change the Components of Price:

   • Provide a rebate Examples>>

   • Waive fees, or make a one time or periodic payment, to cover some costs of the customer Examples>>

Locations where the company is weak due to low or falling share:

1. Change the Benefit Package Examples>>

2. Change the Basis of Charge Examples>>

3. Change the List Price Examples>>

4. Change the Components of Price:

   • Provide a rebate Examples>>

   • Waive, or make a one time periodic payment, to cover some costs of the customer Examples>>

   • Extend a payment term Examples>>

   • Offer a Put Examples>>

   • Offer a Call Examples>>

<<Return to Choice 2

<<Directions to Reduce Price