Reduce Price to Improve Revenues and Margins

CHOICE 3: USE COMPONENTS OF PRICE TO FURTHER LIMIT THE SPREAD OF THE LOWER PRICE

A. Change the Benefit Package

Change Reliability and Price together

No. SIC Year Notes
1 2111 1989 Earlier this year, Brown & Williamson converted full-price Viceroy into a branded generic and more than doubled its market share.
2 3571 1999 Priced from $149 to $249, the Visor was at least one third cheaper than Palm was asking for comparable devices.
3 4813 2003 AT&T will offer VOIP to its customers. This will allow the company to sell cheaper local and long-distance service without having to rent local-phone lines from its archrivals. The company plans to have the service available in 100 markets.
4 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.
5 7372 1991 Besides offering leading-edge software, Borland built its momentum on heavy discounting. The company sold its own spreadsheet, for instance, for $99 to owners of Lotus programs; that's hundreds of dollars a copy less than typical prices.

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