Offer Price Incentives for Customers to Help You Lower Costs
Prices can raise profits by helping encourage customers to ask for things that are very expensive to deliver. This article looks at two examples of creating lower costs and higher profits by using this technique.
With increased global competition, the customer is more in charge than ever. That doesn’t mean that you need to offer services that cost you a fortune: Better designed pricing can be a great help.
Let’s consider an industrial example. A building materials manufacturer studied its customers in terms of how the mix of products they ordered affected profits.