Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: PRODUCT COST SAVINGS SEGMENT

CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE

No. SIC Year Notes
1 1531 1997 Centex will ship in Cavco homes built in a factory, and then install them on permanent foundations on the lots. The result: a 15% to 20% cost saving for buyers.
2 2037 1989 There are several large private label companies. Minute Maid also does business in the food service sector as does Tropicana. Citrus Hill does not. This is an example of standard leaders covering multiple price points.
3 3500 2002 Terex's strategy is based on the idea that customers are more interested in the capability and price of the equipment instead of the innovations. Therefore, Terex produces no-frills machinery and sells it at lower prices than rivals.
4 3577 2001 Recycled printer cartridges have created new industry, and companies such as GRC and Magnolia Ink are filling the niche. A new print cartridge costs between $30-$250 but a used one is 50%-60% less. This helps both the consumer and the environment.
5 3612 1995 ABB found that naked solutions enabled it to charge less for power equipment & heavy industrial equipment than for the standard package. This helped it gain the business of companies who then often agreed to trade up by buying optional services.
6 3679 1996 Hunt Technologies' new meter reader, the Turtle, costs less than half the price of most competing products.
7 4512 1991 Southwest last month introduced a $20 fare between Oakland and Burbank w/ a 21-day advance purchase requirement.
8 4522 2006 Flight Options includes discounts on the hourly rate for long-haul flights and simpler fuel pricing.
9 4700 2003 Convention hotels are being hurt by sites like Hotels.com and Travelocity which offer room bookings for 50% cheaper at different hotels. These online companies can do this because there are low hotel occupancy rates across the country.
10 4841 2004 Satellite TV is trouncing cable in the battle for subscribers in rural and urban areas alike. Satellite's success partly reflects the appeal of its offerings, especially to price-conscious households. EchoStar, for example, sells a package of 60 channels
11 5311 1989 Goldblatt's carries for instance: Bloomingdale's briefs it received due to change in packaging (sold at $2.99, a full $10 off department store prices), irregular Neiman Marcus sweaters.
12 5500 1986 Auto auctions offer big savings but also contain big risks. They rarely guarantee vehicles & don't let prospective buyers take the cars for a test drive. Sellers often use auctions to unload cars with hidden flaws.
13 5600 1990 Ross sells off-price family apparel at prices averaging 30% to 40% less than department stores.
14 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.
15 5912 2004 Costco has the lowest prices for drugs at $69. Wal-Mart is next at $82, then Target at $85, then Kmart and Raley's at $89, then Savon Drugs at $97. The average drug price is $100. Safeway is at $101.
16 6141 2001 AmeriCredit Corp. uses specially tailored data to create their 12 different models for pricing and underwriting, which sets loans at rates between 10% & 25%.
17 6321 1991 A handful of companies have persuaded HMOs to charge on a fee-for-service basis, instead of taking the usual pre-paid fee that covers employees even if they do not need medical attention. The companies share the risk of financing medical costs.
18 7375 2004 Microsoft also offers a stripped- down service called MSN Plus for $5.95 a month but it lacks most of the compelling features of Premium except for the larger e-mail attachments.
19 7841 1991 Instead of the traditional two nights for $3, they now charge $2.50 for one night on new releases. Now more customers get new releases. This hurts small stores who got business when Blockbuster ran out of stock.
20 8000 1985 Ipco's Sterling Optical Chain offers lower prices and convenient hours and locations. An average tab at Sterling is 30% less than at a private optician.

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