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: PACKAGE OF RELATED ITEMS – CHARGE BY A UNIT COMPOSED OF SEVERAL ITEMS USUALLY USED TOGETHER

No.	SIC	Year	Notes
1	2393	1986	Instead of cutting prices when sales of cosmetics organizers began to fall off, Pretty Neat bundled a new version with the old one, advertised savings on the two, and they sold like crazy.
2	3571	1987	Osborne bundled its "Osborne I" personal computer with a slew of software. The package, priced at $1,795, took Osborne Computer Corp from zero to $100m in annual sales in 24 months.
3	3571	1992	To reach consumers and small-business customers, Compaq for the first time will sell its wares through popular computer superstores and mass merchandisers. It will also package some of its new computers with preloaded software and peripherals, which will make them easier for novices to purchase and to use.
4	3571	2002	Hewlett-Packard will retain its market share leadership by bundling PCs with other products and services for companies, by competing on price, and by innovating for consumers.
5	3674	2005	Intel will soon be unveiling the latest version of its popular Centrino platform, code-named Sonoma. With Sonoma, Intel aims to win over more consumers. By bundling its chips in one package, Intel can keep costs down. Notebooks with Sonoma inside will sell for as little as $1,100. With the wireless chips bundled with its processors, Intel has an edge over archrival Advanced Micro Devices. Intel's Sonoma chip also has new graphics chips included in the package to appeal to gamers and students, who often watch moves on their notebooks. IBM, Dell, Gateway, and Sony are among those rolling out Sonoma notebooks.
6	3711	1992	Ford has a "one-price" marketing strategy for its new Escort models. It's offering 4 moderately equipped versions of its Escort–a station wagon, sedan, and 3-door and 5-door hatchbacks for $9,999, several hundred dollars lower than previous models.
7	3711	1993	GM "will keep the pressure on the Japanese" by offering "value priced" cars and trucks. A 1994 minivan will sell for $17,495 with 15 popular options which is $2,480 less than a similar 1993 model.
8	3711	2007	Toyota launched an assault on Detroit automakers' profitable large pickup franchise with the introduction of a larger, more powerful Tundra. Instead of meeting sales goals with low prices, Toyota is adding premium features that rivals charge extra for. The options-loaded model is similarly priced to a competing model but is several thousand dollars less than models with similar options.
9	3861	2005	Now H-P is trying another price-cutting strategy, offering a discount to consumers who buy paper and ink together. H-P began selling a bundle of 280 sheets of photo paper and two cartridges for $80, down from $150, if the items are purchased separately. H-P says the combination reduces the cost of a 4-by-6 digital print to 29 cents, from 60 cents.
10	4724	2001	Expedia Inc. is offering package deals that combine cheap hotel rooms and other services with discount air tickets. Packaged online vacations typically have fixed prices and are supplied by third-party firms.
11	4813	1999	Earlier this month, BellSouth Corp. launched bundles that include local-phone, Internet, cellular, and paging offerings. SBC said it will begin offering the bundles in additional cities throughout its Southwestern Bell and Pacific Bell territories in September and October. A "Home Phone" bundle, featuring local services and a variety of features such as Caller ID, will be available immediately in major markets throughout SBC's region.
12	4813	2004	AT&T, MCI and other smaller companies offer local service in most cities and are heavily promoting package deals that include local, long-distance and high-speed Internet service, often at big discounts.
13	4841	2002	Cable companies have begun to offer package deals of phone, cable and high-speed Internet service which often cut local-phone costs by as much as 30%. With upgrades to carry digital television and internet service, it can be an attractive option and can engender loyalty from subscribers. Regulations keep the local phone companies from fighting back on price.
14	4841	2004	About 40% of cable's digital customer base also subscribes to its Internet services. Cable's bundling of services such as TV, Internet, phone and video on demand will keep the industry competitive with satellite. Satellite was late to the bundling game which has hurt them, although they are responding. DirecTV and EchoStar have teamed up with Verizon Communications and SBC Communications to offer bundled services.
15	4899	2002	Big local-telephone companies BellSouth and SBC Communications are increasingly promoting discounted packages of traditional landline service, combined with a Cingular wireless phone subscription. The three companies announced last week that they soon will offer a bucket of shared wireless and wire-line minutes to customers, essentially selling the two services as one product.
16	5812	1991	McD's hiked prices faster than inflation through the second half of the 1980s. Current CEO's first big move has been to reverse high pricing with a new "value menu."
17	7372	1997	Microsoft bundled Word and Excel together and sold them at a 50% discount, compared with the sum of the individual prices.
18	7375	2004	America Online will offer a computer as part of a package of Internet service. AOL is betting that its new initiative will lure Hispanic subscribers to the AOL Latino service, which it introduced last October. The company bills the AOL Optimized PC as an affordable, all-in-one solution. It includes computer, monitor and printer for $299.99, plus a one-year commitment to a dial-up subscription to AOL Latino for $23.90 a month. The total cost is about $600 in the first year.
19	7900	2003	Vail Resorts, owner of several large ski areas, has partnered with Frontier Airlines to offer two of the most innovative packages yet. The Ultimate Season Pass includes unlimited round-trip flights to Reno, Nevada and Denver from any Frontier gateway, plus unlimited lift tickets at Vail, Beaver Creek, Breckenridge, Keystone and Heavenly for $2,999 per person for the entire season. The Triple Play package for $999 offers three round-trips to Denver, with free skiing at Keystone, Breckenridge or Arapahoe Basin.
20	7996	2004	As part of an ongoing program, a group of five rival attractions in California, including Disneyland and Knott's Berry Farm, have teamed up to let a company called City Pass sell joint passes that amount to a steep discount off the usual asking prices.

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