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Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: REWARD CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE: SEGMENT BUYING DURING PERIOD OF LOW DEMAND

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 Examples>>

D. Change the Optional Components of Price:

  • Provide a rebate Examples>>

  • Offer a coupon Examples>>

  • Waive, or make a one time or periodic payment, to cover some costs of the customer 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>>

  • Extend a payment term Examples>>

  • Offer a Call Examples>>

  • Allow the customer to set the price Examples>>

<<Return to Choice 2

<<Directions to Reduce Price