Reduce Price to Improve Revenues and Margins




No. SIC Year Notes
1 3241 1991 It generally takes a 5-10% discount for a customer to talk to a new supplier and 16% discount to move the customer. Between 1985-1988, the average price for imports was 17% lower than domestic producers. When the tariffs began in 1989, the price of imports rose 9.2% and demand for imports fell.
2 3571 1987 IBM says it is cutting prices by as much as 35% on some older models, as it introduces new computers.
3 3571 1989 Sony and Sun are slashing prices to move older models. After DEC introduced a new workstation, Sony cut prices on its older series of workstations by 25% for businesses and up to 50% for universities.
4 3571 1992 Sun is trying to manage a transition to a new line of powerful workstation computers. 17-30% discounts on old workstations not boosting sales. Sun's 4th quarter profit dropped 43% after price cuts and increased operating costs.
5 3571 1992 Today, Dell introduced 18 new 486-based PC systems that it said were 51% more powerful than the desktops they replaced and were cheaper as well. The announcement came just after Dell cut prices 18% for older models, trying to clear inventory of older systems.
6 3571 2003 The latest Palm device has a faster processor and 8 MG of memory, games, a shopping list and other software. The original Zire drops in price to $79, down $20, and will be gradually phased out.
7 3572 1997 Certain drive manufacturers continued to dump a lot of 1.2GB and 1.6GB desktop drives into the distribution channel in September to clear aging inventory
8 3577 2001 In 2001, makers and sellers of personal computer accessories slashed prices to clear shelves of excess inventory. This is key to a tech rebound. Sales of minidisk recorders with PC hookups soared in 2001 as did removable memory. Flat-screen monitors are also selling well.
9 3674 1994 Weaker product 66Mhtz having to drop price now that Intel and Advanced Micro Devices have higher frequency 80 mghtz chip out on market.
10 3674 2001 Intel Corp. reduced the prices of some chips for laptops and cheaper desktop computers by as much as 37 percent, as the biggest semiconductor-maker fends off rivals and prepares new products. Intel cut the cost of its fastest 1-gigahertz Pentium III mobile computer chips to $401 each from $637. A 900-megahertz model runs $268, rather than $423. Intel also dropped the price of its inexpensive Celeron chips to as low as $64.
11 3674 2001 Advanced Micro Devices introduced several new chips for laptops and one for desktop machines in 2001. The company also cut prices on older models by as much as 49% in the midst of a price war with rival Intel Corp. The new 1.1 gigahertz Athlon 4 chip for laptops will be used by Compaq Computer for the Presarios laptops. Analysts expected Intel to respond to the cuts.
12 3674 2003 Intel, Advanced Micro Devices and Apple Computer will all introduce new high-end chip products which will run at advanced speeds and use less energy. Prices are expected to drop for older merchandise as the new chips are introduced. Intel's Prescott chip will cost $637 in volume quantities and a price cut of 35% has been announced for other stock.
13 3861 1997 Last spring Fuji began slashing prices by as much as 25%. Fuji's explanation was that Costco, one of its five largest U. S. distributors, ditched Fuji for Kodak and the company had to unload 2.5 million rolls of film.
14 5511 2009 Plunging auto sales are making this one of the worst times ever to sell cars. The Toyota Prius hybrid was hot last summer when gasoline rose beyond $4 a gallon, so Toyota Motor Corp. increased production. Today, however, falling gas prices have made the Prius much less desirable. Buyers have recently paid an average of $23,324 for the Prius Touring, the top-of-the line model. As Toyota launches a new Prius for 2010, today's price could be $8,000 lower than six or eight months ago. Some people paid $3,000 or $4,000 above sticker price for the Prius when fuel prices were near their recent peak. Now, prices have swung the opposite extreme.
15 5735 2009 Record companies, weary of scraping by on 99-cent song downloads and dwindling CD sales, are trying to dress up and reimagine their most profitable product—the album—to woo music fans on Apple Inc.'s iTunes store. Song prices on the iTunes store are set for an overhaul. Instead of the longstanding across-the-board price of 99 cents, songs will be priced on a three-tiered system, with new releases or hits costing $1.29, and older tunes at 69 cents. Those occupying the middle ground will still cost 99 cents.
16 5735 2009 Apple Inc. unveiled significant pricing and copyright changes to its iTunes Store, moves by the dominant online music seller that could spur similar action across the industry. Under Apple's new pricing plan that will take effect in April, songs will cost 69 cents, 99 cents or $1.29. He said the "vast majority" of the songs will cost 69 cents, though people familiar with the matter said the most sought-after songs — which generate most of the sales on the service — will likely cost $1.29 as both Apple and the major record labels try to boost revenue growth. Wholesale prices charged by the record labels are likely to change to reflect the new price points.
17 5990 1995 Outlets being squeezed by other retailers, particularly department stores, that have been offering frequent, deep discounts starting at 30% off. Discounts at outlet malls average 25 to 30%.

<< Return to Choice 3