Reduce Price to Improve Revenues and Margins
CHOICE 3: USE COMPONENTS OF PRICE TO FURTHER LIMIT THE SPREAD OF THE LOWER PRICE
D. Change the Optional Components of Price
Allow the customer to set the price
| No. | SIC | Year | Notes |
| 1 | 2865 | 1999 | There are some industries, and we are one of them where the largest customers simply dictate what the price is going to be for next period of time, and ask you if you want to play, or if you don’t want to play. |
| 2 | 3714 | 1991 | In 1989, Chrysler replaced its competitive bid process with target costing for each specific component. |
| 3 | 4512 | 2005 | United Airlines is auctioning off prizes such as a new Chrysler Crossfire, the services of a gourmet chef, adventure trips and tours. However, these products cannot be bought and must be bid on with United Plus miles. |
| 4 | 7372 | 2005 | Governments in Europe, South America, and Asia are turning to open source software, or using the threat as a leverage to get Microsoft to cut prices. Microsoft cannot afford to lose government agency clients which make up 10-15% of its revenue. |
| 5 | 8111 | 2009 | Instead of paying for hours worked, more clients are paying Cravath flat fees for handling transactions and success fees for positive outcomes, as well as payments for meeting other benchmarks. |
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