Reduce Price to Improve Revenues and Margins




No. SIC Year Notes
1 5141 2001 Fleming Cos, the grocery distributor, faced difficult times as discount chains and club stores gobbled up business from independent grocers, its main customer base. Now, the company is expanding its discount stores under the Food4Less and Fresh4Less names. The stores require lower initial investment and generate more cash flow. This approach targets shoppers more interested in price than convenience who are willing to drive to save money.
2 5300 2005 Wal-Mart customers are reaping the benefits of its new financial services. They can cash payroll checks for just $3, transfer money to Mexico for $9.46, and buy a money order for 46 cents. Some competitors charge twice as much. By one rival's estimate, the market for services that Wal-Mart already offers is worth about $5 billion a year in fees, leaving plenty of room for it to slash prices while making a profit.
3 5411 2002 FreshDirect launched a new kind of high-quality food preparation and delivery service. They sell meat, fish, cheese, fresh baked breads, produce and other foods at prices 25% below what most New York grocers charge. The company's CEOs have restricted the food delivery supply chain and used cutting edge technology to gain unprecedented efficiencies. A basket of 25 items at FreshDirect sells for 28% less than at Garden of Eden a high end New York grocer and 12.5% less than the sale circular products at grocery chain Gristede's. The minimum order size is $40 and delivery prices are fixed at $3.95-no tipping. Drivers come only at night and on weekends which helps keep trucks out of the heaviest New York City traffic. FreshDirect insists upon efficiency not technology, the company's orders are based online. However, they refuse to become a dot com.
4 5600 1986 In France, commuters passing through the Auber Metro station can buy 10 sizes of Levi's jeans from a vending machine. They no longer have to bother with crowded stores, rude salespeople or rumpled cash to buy a pair of blue jeans, plus $10 less.
5 5735 2007 Many movie studios are reluctant to put their films up for rent or sale on Apple's iTunes service because of Apple's pricing. Apple generally charges $14.99 for new titles compared with $18 for a new DVD, undercutting income for the studios.
6 6021 2004 Credit unions, because they're nonprofits, are able to offer lower rates and fees than banks. The average rate on a 4-year car loan is 4.68% at credit unions compared with 6.46% at banks. However, banking at a credit union has its drawbacks and most won't have a widespread branch or ATM network.
7 6141 2006 One of the Web's most intriguing trends is the rise of peer-to-peer lending communities such as Zopa Ltd. and Prosper Market Inc. It turns out that online communities can do a lot of what banks and payday loan companies do – and cheaper. In Prosper's market, loan rates are set by auction. Borrowers post an application, and prospective lenders bid on the interest rate, aided by basic analysis tools provided by Prosper such as simplified credit scores. Many lenders do extra research; some contact prospects by phone.
8 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. Many ski resorts have lifted the minimum-stay requirements associated with the normally busy holiday season.

<< Return to Choice 3