CHOICE 1: PRICE SAME, REDUCE PERFORMANCE AND COST

CHOICE 2: Isolate the segments who must pay the price increase

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

A. All Segments Choice 3>>

B. Customer segments who are captive to the company due to a unique Performance benefit

• Due to a unique Function Choice 3>>

• Due to a unique Reliability Choice 3>>

• Due to a unique Convenience Choice 3>>

C. Segments of customers where competitors are likely to be unwilling to counter the company’s change in Value

• Customer segments with high servicing costs Choice 3>>

• Customer segments making higher than average use of capacity Choice 3>>

• Customer segments purchasing during a period of unbalanced supply and demand Choice 3>>

• Customer segments served by competitors likely to follow the Price increase Choice 3>>

<<Return to Choice 1

<<Directions to Raise Price