Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: AFFILIATED MEMBER SEGMENT / MEMBERS OF COMPANY SPONSORED CLUBS OR AFFINITY PROGRAMS

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 7372 2000 The ideal customer of an ASP (application service provider) is a company that lives without company specific modifications. Usually, these are small companies.
3 7372 2004 Arena Solutions leases software, rather than sells it outright. The company keeps the software on its servers, doling it out per customer need. Intuit uses the company to track its product data and any changes to software packaging.
4 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.
5 7514 2005 YachtSmart of North America, a four-year-old company that manages two shared boats and is working on a third, has a structure typical of many fractional ownership plans: On an 85-foot Azimut yacht, a one-eighth share costs $500,000, plus $4,125 a month for maintenance, insurance and docking fees. Share owners don't have to do anything except write their checks, pay for gas, then show up and sail. Their money buys 28 days of use a year; the boat spends 20 weeks a year empty in transit from one place to another or undergoing maintenance.
6 7514 2005 Exotic Car Share, based in the Chicago suburb of Palatine, Ill., is in the middle of parceling out pieces of a new Bentley Continental GT in one-fifth shares, at a cost of $30,000 plus $10,000 a year for maintenance. Each of the five owners gets the use of the car for nine weeks a year.

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