In a long lasting recessive economy, like the one we're in the midst of, everyone is looking for a "bargain". One of the easiest ways to give your customers a bargain is to sell less and charge more. This can be effective for any company that is currently offering tangible goods and services.
Take any product you have and reduce the size. If it's a service then reduce the amount of time. If it's a combo of products and services that you install, then reduce the coverage, the warranty or just about any aspect that makes sense.
Then you reduce the price. Don't reduce it too much. Coca Cola has played this game masterfully. For decades the standard can size has been 12 fluid ounces. A decade ago they introduced a 7.5 ounce can. The value is a lower price for an 7.5 ounce can than a 12 ounce can. The benefit is fewer calories. A 12 ounce can has 120 calories. A 7.5 ounce can has 90 calories. Well, of course, it's 25 percent less soda (I'm rounding up to 8 ounces) so it's 25 percent fewer calories. That is the magic of marketing. You get less but there is a benefit - fewer calories.
So a 7.5 ounce can is 25% less soda than a 12 ounce can you'd expect the price to be at least 25% less right? Wrong... I ran out to my local Target, ignored all the sale prices and calculated the price per ounce of the exact same Coco Cola product - one in 7.5 ounce cans and one in 12 ounce cans. 7.5 ounce cans cost $0.058 per ounce and 12 ounce cans cost $0.037 per ounce.
That might not seem like much but its a whopping, 63% more money, for the exact same product! That is quite a magic formula for making more money. Give them less, charge them more and have them say "thank you" for saving them 30 calories per can.
If you're not convinced this strategy works outside of packaged consumer goods think again. Many universities are changing the traditional MBA programs from two year, full-time programs to one year, full-time programs. Based on that alone you might assume the price will be half as much. It's not. Northwestern University's Kellogg School of Management charges around $75,000 for its one year program and $113,000 for its two year program. The schools are not suffering any losses in pricing power.
For the students, they save a year of their life, get into the career game one year earlier and spend $38,000 less. Many students will see this as great. However, if you're looking for bang (courses) for the buck, the two year program provides you more education for the money. Kellog offers both programs but more students are moving into the one year program. As long as Northwestern keeps getting students to apply they can matriculate more students on one year programs and generate more revenue.
If you're looking for an edge and a way to offer your customers "more" think about offering them less.