Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

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

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

1. Change the Benefit Package 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>>

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

<<Return to Choice 2