Reduce Price to Improve Revenues and Margins




No. SIC Year Notes
1 2834 1991 Government and private health groups have negotiated discounts of 25-60%+ off usual wholesale prices.
2 3523 1993 The industry's largest customer receives up to 6% discounts.
3 3571 1989 IBM has started a price war on mainframes. Survey shows that nearly 1/3 of a large group of IBM customers got a 15-25% discount on their mainframes. Another group, 1/3+ of those surveyed, got discounts higher than 25%.
4 3571 2005 After a disappointing holiday turnout last year, Hewlett-Packard worked closely with Wal-Mart for the next 12 months to ensure this year's strong holiday sales. The resulting strategy is a big emphasis on technology products at Wal-Mart now aimed at fueling the end-of-year shopping frenzy and whetting consumers' appetites for other goods inside Wal-Mart stores. The two cooked up such holiday specials as a desktop computer and 15-inch monitor for just $398, a laptop computer for $398, and a printer that can also copy, fax and scan for $48.88.
5 3572 1992 Conner gives its largest customer, Compaq, the lowest prices. Conner recognizes the need to generate long term business with a Very Large customer.
6 4512 1994 American Airlines uses computers to help set prices, so that it can give a range of prices on each flight and fill its planes. Ex: offers $129.83 tickets for senior citizens and government and military employees.
7 4512 2002 Delta Airlines has cut business fares over the last 8 eight weeks by over 20% in more than 400 small markets. This fare cut produced double digit increases in revenues. Other competitors have followed Delta's moves.
8 4813 2004 Lower prices in the telecommunications industry are enticing many consumers to spend more. A proliferation of alternatives and new technologies is forcing phone companies to keep competing on price. The big long-distance carriers have for years used price as a key weapon in the battle of elite contracts with government and big businesses.
9 5511 2007 Haggling over prices has become widely unappealing. 65% of car buyers say they'd rather not haggle. Women are particularly adverse to the tactics.
10 5734 1993 As price wars were breaking out between Microsoft, Lotus and Borland, profit margins on software collapsed and Egghead suffered. At the same time, though, Software Spectrum Inc. and Corporate Software Inc. each grew by more than 30% in 1992 by giving big discounts to corporate buyers.
11 5900 2003 In the world of online goods and services, customers can be divided into segments in accordance with their needs and resources. This offers a unique opportunity for pricing segmentation. One company discovered that a small reduction in the price of high-end merchandise brought in more sales from educational institutions. To retain margins and these customers, the company created a special website with special pricing for educational institutions.
12 5961 1998 Traditionally, the salesmen in Premier Farnell's 80 sales offices have discounted products, sometimes considerably, to bring them to a commercial level. Now a rational discounting policy has been implemented where the majority of products are shown at a market price, with the opportunity for salesmen to discount by a maximum of 10% if the volumes are sufficient, and the customers are eligible. Large, centrally managed orders are still quoted individually.
13 6141 2008 In recent years, credit-card issuers have built more flexibility into their reward cards as a way to build consumer loyalty. Chase, for example, has long boasted its Freedom card gives consumers the flexibility to switch between cash back and reward points, while offering up to 15 everyday spending categories where they could earn up to 3% cash back all the time.
14 6531 1990 Many real estate brokers have grown accustomed to shaving a point or so off their commissions to satisfy hard-bargaining buyers.
15 6531 2005 As home prices surge, sellers have more leverage with traditional real estate agents. Often, they can negotiate a small reduction on the typical 6%.
16 6552 2008 With the condo glut growing as new towers are finished, and buyers walk away from presale contracts, developers increasingly are resorting to auctions to unload units at steep discounts. Unlike ubiquitous foreclosed home auctions, these events seek to establish market prices for untainted, even upscale properties. In a test of the strategy, 39 luxury coastal condominiums went under the hammer late August at about half their previous asking prices. Thirty three of the 39 condos sold on auction day, including a three-bedroom, 1,651-square-foot unit that went for $995,000, well above the minimum bid, but well below the original list price of 1.5 million.
17 7300 2009 Geary Interactive Inc. reduced its hourly fees to $80 from $100 to $135 in response to customers desires for lower rates. However, Geary added a contractual bonus to be paid at the end of a certain time period if its marketing campaigns met or exceeded a client's goals. The move also meant a shift for staff often accustomed to thinking about loner-term goals such as brand development; now, there is a higher sense of urgency.
18 7514 1989 Rental rates for corporate customers negotiating new contracts are about the same as a year ago. The biggest customers are getting the lowest rates.
19 8221 1996 This year North Carolina Wesleyan cut tuition for incoming students 23%. Also Univ of Rochester, Pine Manor, Waldorf College, Muskingum College.
20 9100 2003 The U.S. Postal Service will offer special discounts to its heaviest users of first-class mail. Capital One Financial will receive discounts up to 6 cents a piece over the next three years. This promotion may open up a new revenue source for the USPS which has been struggling with a sluggish economy and the popularity of e-mail.

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