Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: PRODUCT COST SAVINGS SEGMENT / MANUFACTURING BUSINESS FUNCTIONAL COSTS / MAKE COST

CHOICE 3 COMPONENT: EXTEND A DISCOUNT IN KIND

No. SIC Year Notes
1 4812 1997 PrimeCo started offering 500 minutes of wireless calling for a mere $55. Previously, one customer used to pay $350 a month for 200-250 minutes.
2 4812 2002 By offering more free time for calls, AT&T Wireless cut per-minute prices on one plan 33%, while Verizon Wireless cut one rate plan 29%.

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