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Offer Price Incentives for Customers to Help You Lower Costs Business Articles | June 15 Cheap Ultra Boost Black , 2008
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.


The company had a unique manufacturing process that made it cheaper than competitors to produce higher volumes of identical items, but more expensive to produce smaller volumes of those same items. This was true due to every item being made to order.


The ideal solution for this company would be to have customers split their orders Cheap Ultra Boost Triple White , buying the small unit quantities from competitors and the larger quantities from this firm. The manufacturer had prided itself on being the low-price supplier across the board and wasn't sure how well this focus on getting profitable volumes could be accomplished.


Through market research, the company was able to determine that a high percentage of current and potential customers would be willing to split their orders in this way if a price disincentive were provided for lower volume orders. The manufacturer provided that disincentive through higher prices on small volumes of individual items, and keeping low prices on the higher volumes w.cheapwholesalenikenfljerseys.com/]Cheap Jerseys China[/url] Cheap NFL Jerseys China