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Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: SEGMENTS BUYING A PACKAGE OF RELATED PRODUCTS

CHOICE 3 COMPONENT: USE PRICE COMPONENT TO LIMIT THE SPREAD OF THE LOW PRICE

 

  1. Change the Benefit Package Examples>>

  2. Change the Basis of Charge

    • Combination of bases – Combine bases in order to use two bases in the variable charge to the buyer Examples>>

    • Package – Create a package of an item and sell by the package Examples>>

    • Package of related items – Charge by a unit composed of several items usually used together Examples>>

  3. Change the List Price
    (No 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 Examples>>

    • Extend a payment term Examples>>

<<Return to Choice 2