Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: VOLUME PURCHASED SEGMENT / VOLUME DISCOUNT DOLLAR AMOUNT BASED ON REACHING STATED PURCHASE TARGETS

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE

No. SIC Year Notes
1 6211 1987 Since negotiable commissions were instituted in 1975, institutional traders have bargained with full-service firms to a rate of 5 cents a share. Most individuals trade at posted rates, which have climbed about 12% to an average of 42 cents a share.
2 6211 2004 Charles Schwab announced that it will slash prices for trading commissions. And not by a little. Fees are coming down 33% for most online trades and by 66% for wealthier customers with more than $1 million in assets at Schwab. The move will cost $95 million in lost revenue.
3 6211 2004 Schwab will offer $9.95 trades to clients with $1 million in household assets, down from $29.95, and is lowering commissions to $19.95 for a range of additional clients.
4 7372 1998 Microsoft offers volume discounts to PC makers that help it hit its goals.
5 7514 2005 Seeking to appeal to summer road trippers, Avis is offering $75 off a long-term rental of a convertible or roadster in the New York and Tri-State area.

<< Return to Choice 3