Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: VOLUME PURCHASED SEGMENT / PACKAGE OF RELATED PRODUCTS

CHOICE 3 COMPONENT: COMBINATION OF BASES – COMBINE BASES IN ORDER TO USE TWO BASES IN THE VARIABLE CHARGE TO THE BUYER

No.	SIC	Year	Notes
1	3577	2004	Sun Microsystems has moved from quoting traditional pricing – per processor for hardware, per user for software – toward a surfeit of new choices. One package of software for all sorts of Internet chores comes with one free server for a flat $100 per employee per year, unless the buyer has fewer than 100 employees, in which case the software is free. Or customers can buy computing power like electricity, at a rate of $1 per processor per hour. Future packages for a year's computing power might have the customer pay up front, pay later, pay now and run down an account, or draw computing power from a general-purpose "grid" of computers run by Sun. Blue Cross/Blue Shield of Massachusetts went on Sun's $100-per-employee plan for 3,500 employees.
2	4813	2003	Like most rivals, Sprint now offers unlimited local and long-distance calling for one flat rate. Prices start at $54.99. Customers can include unlimited wireless minutes for $149.99. Those deals give customers a 5% discount on wireless service. Sprint's goal, like other carriers, is to hold onto its highest-paying consumers.
3	4813	2004	Some telephone companies are now offering for $133 a month 70 digital TV and movie channels, 75 radio and music channels, high-speed internet access, local and cell phone services, and unlimited national long-distance calling on evenings and weekends.
4	6211	2005	Harrisdirect cut trading commissions to $7.95 for customers with at least $50M in the account. Schwab has reduced its prices three times in less than a year to as low as $9.95. Fidelity made it easier to qualify for its $10.95 commission rate. The latest pricing moves have reduced commission costs for both active traders, as well as investors with smaller balances and those who trade less frequently.
5	6552	2006	Destination clubs allow members to stay in a luxurious home with less financial investment and responsibility. They provide the right to vacation at the various homes and condos. 2000 Exclusive Resorts members share access to 300 homes at 40 resorts worldwide. There is an upfront fee depending on the duration of the stay and annual fees.
6	7011	2005	The Luxury Collection hotel group offers a "Welcome to Italy" package, which allows travelers to spend nonconsecutive nights at any of their hotels over a two-week period, with a seven-night stay required. Their rates range from $2,583 to $3,983 for a double, with savings up to 30 percent.
7	7011	2005	The Baglioni Hotels Group offers its Baglioni Bespoke program where tourists can spend six nonconsecutive nights in at least three of their hotels over a two-week period. Six nights in a double room starts at 1,980 euros (about $2,379 US), a savings of as much as 20 percent.
8	7011	2005	Flatotel is offering shares in New York City during the summer months when most New Yorkers are fleeing to the beach. Shares are available in packages of four, eight and 10 weekends. The hotel offers suites and studios with daily housekeeping, high-speed internet access and kitchenettes. A four-weekend share in a studio starts at $298 per night.
9	7999	2005	Vail Resorts sells the "Perfect 10" lift pass at $419 for adults and $299 for kids under 12. It's good for 10 days at several different resorts in Colorado and California.
10	8699	2007	Club lounges can be a welcome respite for weary travelers but are often restricted to first and business class passengers or holders of a pricey yearly pass. Priority Pass has sprung up to fill this need. The service offers a pass for $400 a year which provides unlimited access to more than 500 lounges in 275 cities worldwide. Customers can also choose a lower yearly fee with a separate visit fee. It has restricted membership and advertising for fear of alienating airline partners by picking off members or overcrowding lounges.

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