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CHOICE 1: Raise Price with No Change in 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 Choice 3>>

  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 who purchase products with higher Cost components Choice 3>>

    • Customer segments with high servicing cost 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>>

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

<<Return to Choice 1

<<Directions to Raise Price