Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: VOLUME PURCHASED SEGMENT

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

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

A. Change the Benefit Package Examples>>

B. Change the Basis of Charge Examples>>

C. Change the List Price (No examples)

D. Change the Optional Components of Price:

• Provide a rebate Examples>>

• Extend a discount in kind Examples>>

• Set a Price cap Examples>>

• Extend a payment term Examples>>

<<Return to Choice 2

<<Directions to Reduce Price