Thread: pricing issue
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Old 03-15-2005, 07:56 AM
Robert Anderson
 
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pricing issue


Hello,

We are going to be rolling out new packages. The problem is that these
packages are both more generous and less expensive than the existing
packages. The problem is that many existing customers will not notice the
changes for a few months (probably) and will then find out about the changes
and call in to change to the less expensive, more generous packages.

Problems:

1. Customers will be angry if they are paying more for less. The new
packages won't be secrets but many will probably still be angry and possibly
leave the company.

2. The company could really lose if all these customers paying a lot now
want to downgrade to a much less expensive package. The owner is,
justifiably, concerned about the affect this will have on the bottum line.

As the marketing coordinator I am developing these new packages -- which are
necessary to be competitive -- but I want to make sure that I don't cause
more problems than I solve.

Any advice on how to handle problems like this? Any resources, Web sites, or
books that might help? How have other businesses handled similiar problems?

Thanks.

--
Robert Anderson



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