Cross-market subsidization is a strategy that many small businesses use to increase revenue. The strategy is often used when the company has two or more product lines and one of its products has greater profit margins than the other.

For example, if your business sells both desk lamps and high-end purses, you may offer discounts on desk lamps in order to have customers buy them instead of purses. This helps increase sales while increasing profits!

Keyword: cross-market subsidization, strategy, small businesses, product lines, profit margins. It’s also important to note that there are times when cross-market subsidization is not a viable strategy for your company.

For example, if one of the products you sell has increased production costs due to high demand or other factors beyond your control (such as volatile prices), it may be more prudent to simply increase prices on this item instead of trying to offer discounts elsewhere within the business.

profits, revenue, business @ Pixabay

One way companies can engage in cross-marketing is through pricing strategies and deals. A discounted price on an unrelated good might encourage customers who want those items at a reduced cost than normal to purchase them while they’re in.

LEAVE A REPLY

Please enter your comment!
Please enter your name here