Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: CLUB MEMBER SEGMENT

CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE

No. SIC Year Notes
1 5045 2000 Delta is arranging to deliver all its employees a subsidized PC. They each will pay $12 a month for 36 months, or $432 for package that includes a brand name PC with an Intel microprocesser, software, and Internet Service. People PC which is backed by Softbank Corp. is arranging this deal.
2 7514 2005 Fractional ownership, where buyers purchase a share of an expensive asset and pay the seller fees to handle the scheduling and maintenance, is a fixture of the private jet industry and a growing force in the market for vacation properties. Now, this model of ownership is creeping into other asset classes, too. Exotic Car Share, the Chicago-area company selling shares in the Bentley, began as a storage facility for fancy cars about a decade ago, before adding a club that owns cars and shares them among its members. That is still the core of its business: Participants pay a membership fee plus usage charges to have access to its fleet of vehicles, which include everything from a Porsche Boxster S to a 1971 Camaro. Exotic's established business — it has 547 club members — gives its fractional effort a reputation to stand on.

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