Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: LOSS LEADER SEGMENT / A SINGLE-YEAR ROUND PRODUCT
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 5331 | 1998 | Kmart recently began discounting Mach3 starter kits by about 10% in some markets. Buyers for other chains suggest that the discounting is likely due to routine price cuts on a hot-selling product to build store traffic. |
| 2 | 5331 | 2005 | Wal-Mart's three-year-old financial-services department cut rates on money wiring to attract the fast-growing immigrant segment, supporting family back home. |
| 3 | 5411 | 1994 | Kroger supermarkets in Indianapolis were promoting pork chops at 99 cents a pound, compared with the everyday price of $1.89 a pound. Everyone's cutting prices. |
| 4 | 5731 | 1985 | Federated stores sell fast-moving items – such as TVs and VCRs – at close to cost. That means some 40% of Federated's products generated just 20% of its income. This strategy reinforces the low-price image and encourages customers to return. |
| 5 | 5731 | 1988 | In 1988, Best Buy began offering CDs at "ridiculously low prices"–$9.98–to lure customers in to their stores. The loss-leader strategy really took off in 1994. |
| 6 | 5731 | 1995 | Best Buy retailer sells CDs near or even below cost to lure customers into stores. |
| 7 | 5731 | 2009 | Discounts abound for digital cameras and digital music players as the recession slows sales. Online retailer Newegg is featuring a Centon Electronics music player for $17, down 43% from $40. |
| 8 | 5735 | 2002 | Big-box stores like Wal-Mart and Best Buy often offer deep discounts on new releases on their own, in large part to drive customers into the stores who may in turn stock up on other goods. |
| 9 | 5812 | 1991 | McDonald's lowered prices only on its cheapest menu item while maintaining the regular price of its more expensive items. The new low price of its most basic fare keeps price-sensitive buyers coming in. But most pay more for bigger items. |
| 10 | 5812 | 2009 | Quiznos sells a variety of sandwiches. In January, the company cut its prices on 37 of its menu items, taking 20 of its subs for under $5. Quiznos overall sales jumped by double-digits and traffic is up more than 30 percent this spring. |
| 11 | 5941 | 1992 | Zane's Cycles in Branford, Connecticut, is a successful independent bicycle retailer in the United States. When Connecticut passed a bike-helmet law in 1992, Zane's sold helmets to kids at cost rather than take advantage of legislated demand. Owner Chris Zane convinced area school administrators to distribute flyers to students under 12 announcing that policy. "We sold a ton of helmets and made a lot of new friends for the store," |
| 12 | 7832 | 1992 | Cinemark located walk-in and drive-in theaters in small towns, opened discount theaters as an option for families. 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. |
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