Reduce Price to Improve Revenues and Margins


D. Change the Optional Components of Price

Offer a Put

No. SIC Year Notes
1 3630 1992 Maytag offered end users, in 1991, a 10-year repurchase guarantee on the Dependable Drive transmission in its washing machines. The company maintains this promotion was "extremely well-received by consumers."
2 3711 2005 To reignite sluggish sales the car industry is aggressively returning to an old strategy of pushing people to lease instead of buy. This year marks the first time in four years that car makers spent more money on leasing incentives than on traditional financial deals. General Motors Corp. began a pilot program with three car models in which customers in Boston, Atlanta and all of California can return their car in the first 12,000 miles and forget the lease with no penalty except for loss of the down payment which is a minimum of $1,500.
3 3711 1989 Infiniti claims it will offer the most competitive leasing programs in the luxury market. Infiniti will guarantee that its residual values will equal or exceed those of competitors. The greater the residual value, the lower the monthly payments.
4 3711 1987 Ford guarantees the trade-in price of its new Merkur Scorpios.
5 5731 2009 One fledgling business saw no choice but to offer a big promotion almost from the onset. During the holiday shopping season, Ficion Audio, a four-month-old high-end audio store in Redmond, Wash., sold mostly small items but few big ticket speakers, which run from $3400 to $15000 a pair. The owner says he heard consumers mention their fears about the area job market. So in early January, he started a promotion where customers can return their speakers for 90% of the sales price if they lose their jobs within one year. If the job loss is between the one-year and two-year mark, he'll refund 75% of the price.

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