Reduce Price to Improve Revenues and Margins




No. SIC Year Notes
1 3571 1999 Sun Microsystems acquired Star Office last month and said it would begin offering word processing and spreadsheet applications for free over the Internet. By giving away some software, Sun is hoping to increase sales of its computer servers, which host the software.
2 3571 2004 Sun Microsystems announced an aggressive price for its new operating system – free. Sun hopes the no-cost of Solaris 10 will not only attract customers but also expand the number of developers who write programs that work on computers running the operating system.
3 3577 2005 Hewlett-Packard is taking action with price cuts and promotional discounts to boost market share and lock customers into high margin branded products such as ink and paper. However, rivals such as Lexmark International, Epson and Canon have not followed suit. A price war would hurt HP, which sells leading-edge features for a premium, more than rivals who sell mainstream fare.
4 3679 1995 Nintendo charted a business model in which game consoles would be "given away" to consumers at cost, or even below, to boost sales of software. Virtually all of Nintendo's profits come from sales, fees, and mfg. charges on game software.
5 4813 2008 Both AT&T and MCI give two national listings for 99 cents, 41 cents cheaper than their older services at 555-1212. Connections are free, but after calls get patched through, consumers beware: AT&T and MCI each charge customers per minute fees as high as 38 cents and 28 cents respectively.
6 5511 2002 A Nissan dealer in Tewksbury, Mass may make only $500 over invoice on a Nissan high end Maxima from a certain doctor client. However she makes up for it in the gross profit she makes off him in parts, service and sales over the 8 years he has been coming for service. She will make $1800 -$2000 on his trade in, and another $100 over the next two years on service. The the profit on the deal adds up to $3500, not just $500.
7 5734 2005 Computer manufacturers and retailers have been using low prices on both PCs and laptops to lure in student shoppers and their parents. They then hope to sell peripherals, accessories or systems with more features and better margins.
8 6029 2002 Banks are trying hard to improve customer satisfaction and shore up profits in an environment of unprecedented competition for financial services. Much of the new effort is couched in consumer-friendly terms – Commerce Bank even has a "penny arcade" where it will turn coins into bills at no charge.
9 6211 1998 StrongFunds is offering to waive all IRA fees "for life" if an investor puts $2,000 into a new Roth IRA before April 15 of this year.
10 6211 2002 Schwab charges $400 for an analysis of client's holdings and a couple of hours worth of advice. Schwab also manages a client's money for a yearly fee based on assets. But competition is fierce.
11 6321 2006 Humana is relying on low costs to gain market share against its much larger competitors in the health insurance field. It is offering very low prices for prescription-only drug coverage and hopes to leverage the relations built with enrollees to switch them to comprehensive Medicare plans, called Medicare Advantage.
12 7372 1997 Despite Sega's aggressive product promotions, recent sales of its Sega Saturn game machines lag far behind those of Sony and Nintendo. For the 3rd consecutive year, Sega is expected to report big losses in its consumer video-game business. Critics argue that Sega loses $100 or more on every Sega Saturn it sells, largely because the company still gives away 3 free Sega-developed games to every buyer. Video-game companies make most of money from software.
13 7372 2005 Skype has created a new version of its phone-calling software in an effort to turn Skype mainstream. Skype allows its registered users to make free computer-to-computer phone calls to each other anywhere in the world. Millions of people use it, mainly in Europe and by budget conscious students and immigrants in the U.S. Skype hasn't turned mainstream yet mainly because most computers aren't equipped with microphones, and those that do have mikes make clumsy telephones when compared with real phones. Also, Skype calls are free only between Skype users. To call a nonmember, one has to sign up for prepaid service called SkypeOut – though at two cents a minute, the calls are cheap.
14 7384 2000 Ofoto offers free processing for traditional 35 millimeter film. Users mail in the film and can then preview the images on Ofoto's site and pay only for the prints of the shots that they like.
15 7832 1992 Cinemark charged $1 to lure customers into theaters and then made money on higher margin items like popcorn, soda and candy that consumers valued more.
16 7900 1988 At Alpine Meadows, Badger Pass, and Donner Ski Ranch, skiers over 70 can ski free any time during the season.
17 7999 2008 As the recession begins taking a toll on the ski industry, resort operators are offering a flurry of discounts they hope will draw more visitors. A drive-to resort is offering a "Monday on Us" deal that it hopes will entice travelers to stay longer. Skiers who book in a hotel from Friday to Sunday can get free lift tickets on Monday.

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