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 LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 2043 | 1990 | Malt-O-Meal clone cereals are no-frills – no decoder rings inside, few coupons, no TV ads. But Malt-O-Meal saves consumers big money. Its bags – not boxes – are typically priced at about 1/2 of what big brands cost. |
| 2 | 3334 | 1988 | ALCAN often initiated price cuts of fabricated prices in response to a reduction of ingot prices, taking share from their competitors. Furthering their success was ALCAN's strategy to continue production of ingot at competitive prices, while many others left this market. |
| 3 | 3571 | 1987 | Tandon, citing lower overhead and costs from offshore production, made reductions of as much as 25%. |
| 4 | 3571 | 1991 | IBM and Compaq expected to counter clone makers with "clone killer" pricing. Nimble clone makers engage in "forward" pricing, anticipating reductions in the cost of microprocessors. |
| 5 | 3571 | 2004 | The largest personal computer maker, Dell Inc. reported their third quarter profit jumped 25% as its U.S. business customers boosted spending on PCs. Dell's profits were buoyed by accelerating declines in component costs that helped increase customer demand. Dell's aggressive push to pass along lower component costs helped spur demand, especially in notebook PCs where shipments increased 35%. |
| 6 | 4481 | 2000 | Most cruise costs are fixed whether a ship's berths are filled or not, so it is better to sell cheap than not at all. Last minute cruise bargains are widely available. Some are finding that it is cheaper to go on a cruise than to stay home. |
| 7 | 4512 | 2004 | Some carriers, including Continental Airlines, have cut their first-class fares. As a result, they are seeing an increase in sales of their priciest tickets. |
| 8 | 4724 | 2003 | Orbitz's fees for airlines are sharply lower in part because it directly connects to the airline's booking system, cutting out middlemen fees. |
| 9 | 5122 | 2005 | Toyota has created its own new economy-class drug plan. Toyota has contracted the work to an outfit called CHD Meridian Healthcare. Toyota will pay CHD a management fee and the cost to run the pharmacy; in return CHD passes on the drugs for 30% to 50% less than a pharmacy benefit management vendor. |
| 10 | 5942 | 1998 | Borders superstore stocks about 150,000 different book titles and 50,000 music selections, as well as videos. The prices are about as good as they get: 10% off the list price of most hardcover books, 30% off New York Times hardcover best sellers. |
| 11 | 6331 | 1998 | State Farm had a decrease in its rates, averaging about 2%. Comes as insurers have cost benefits from a reduction in the number of accidents and the average cost of accidents. |
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