Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: REWARD CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: POTENTIAL THIRD PARTY BUSINESS 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 (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>>

   • 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

     • Products the customer uses with the product for sale Examples>>

     • Products the customer does not use with the product for sale Examples>>

<<Return to Choice 2