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CHOICE 1: RAISE PRICE, REDUCE CURRENT 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.

  1. All Segments
    (no examples)
  2. Customer segments who are captive to the company due to a unique Performance benefit

  3. Segments of customers where competitors cannot counter the company’s change in Value

    • Customer segments who require a specific product system component Choice 3>>
    • Customer segments who use a service or purchase a product on a specific occasion Choice 3>>
  4. 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>>

<<Return to Choice 1

<<Directions to Reduce Price