Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: INTRODUCTORY OFFER SEGMENT / DISCOUNT A NEW PRODUCT TO EXISTING CUSTOMERS

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE

No. SIC Year Notes
1 2752 1989 Customers with large print jobs of $1MM or more and the potential for follow-on business now can command discounts of up to 20% off list
2 4813 1996 AT&T says it will offer new customers 3 months of free, unlimited "local-toll" calling in the Illinois region. These toll calls go beyond a local market without crossing long-distance boundaries. Offer is good from August 1 to October 31.
3 5712 1995 The new products at Bombay Company will have an initial promotion for 10 days at a 15% discount.
4 6141 1987 American Express's Optima Card will carry an initial annual interest rate of 13.5%. In contrast, the average bank card interest rate nationwide is currently 17.82%. #1 issuer Citicorp charges 19.8% on its regular Visa cards and Mastercards.
5 6141 1993 The spread has remained the same, with the charter members it's prime plus 8.9%, and for everyone else that came after that first year, prime plus 9.9%.
6 7372 1993 Entered the database market by offering $495 Access package for $99 during 3 month promotion — sold 750,000 copies. But even after the promo, only increased the price to $125
7 7372 2000 In December 1999, Oracle software company cut prices to corporate customers by 40% to 50% for its new Internet database 8i, hoping to stimulate demand.
8 7372 2009 Microsoft's new Windows 7 PC operating system will go on sale in stores for $40 less than the $240 it charged when it launched its Vista program in 2007—the biggest price cut on a new version of Windows in years.

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