Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

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

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

1. Change the Benefit Package

   1. Change Function and Price together Examples>>

   2. Change Reliability and Price together Examples>>

   3. Change Convenience and Price together Examples>>

   4. Make more than one change in Function, Reliability and Convenience Benefits Examples>>

2. Change the Basis of Charge Examples>>

3. Change the List Price

   1. Customer based list price change Examples>>

   2. Product based list price change

      1. Main product Examples>>

      2. Ancillary product Examples>>

4. Change the Optional Components of Price

   • Provide a rebate Examples>>

   • Offer a coupon Examples>>

   • Extend a discount in kind Examples>>

   • Waive fees or make a one time or periodic payment Examples>>

   • Offer a trade-in allowance Examples>>

   • Provide a free or heavily discounted product from a third party Examples>>

   • Provide a free, or heavily discounted, product from the company, other than the product on sale Examples>>

   • Set a price cap Examples>>

<<Return to Choice 2