Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: PRICE LDR VS STD LDR 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 (No Examples)

4. Change the Optional Components of Price

   • Offer a coupon Examples>>

   • Extend a payment term Examples>>

<<Return to Choice 2