Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: PRICE LEADER VS STANDARD LEADER SEGMENT

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

1. Change the Benefit Package
   • Change Function and Price together Examples>>
   • Change Reliability and Price together Examples>>
   • Change Convenience and Price together Examples>>
   • Make more than one change in Function, Reliability and Convenience benefits, along with the Price Examples>>
2. Change the Basis of Charge ( No Examples)
3. Change the List Price Examples>>
4. Change the Optional Components of Price
   • Offer a coupon Examples>>
   • Waive fees or make a one time or periodic payment Examples>>
   • Offer a trade-in allowance Examples>>
   • Provide a sample of the product Examples>>
   • Provide a free or heavily discounted product from a third party Examples>>
   • Set a price cap Examples>>

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