Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: LOW DEMAND PERIOD SEGMENT

CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE

No. SIC Year Notes
1 1522 1988 Developers created "fractional ownership," a low cost product to build demand in the face of sales resistance because of high prices. Offers customer lower sticker price while developers net 25-50% more than individual sale (buyers pay 1/3 price for 1/4 ownership).
2 4512 2005 To avoid losing revenue for not having sold seats, airlines sell their empty seats to bargain Web sites who then sell them to consumers. Consumers can save several hundred dollars off published rates. The web sites use dynamic pricing models, which adjust fares on specific flights as the seats start to sell. Discount web sites include priceline.com, CheapTickets.com, and HotWire.com. The cheaper tickets usually come with an over-night stay requirement.
3 7900 1988 At Mt. Reba, parents can get free lodging and skiing for children 12 and under when staying midweek in a Bear Valley hotel room, condo or home rental.

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