Reduce Price to Improve Revenues and Margins


2. Retain Customers

Punish or preempt competitive discounts

No. SIC Year Notes
1 2000 2008 Supermarkets push back against food companies that are reporting profit increases. The pressure isn't limited to price cuts. Some retailers demand concessions such as better service, more leeway in discounting and special promotions.
2 3711 2007 Toyota offers options-loaded trucks at a lower price than similar options from competitors. However, it will not offer a much cheaper baseline model to avoid the appearance that it is too eager to attack the big-truck market dominated by Detroit.
3 4812 2003 Verizon offers its customers a Worry Free Guarantee. One feature is "New Every Two" which allows the subscriber to get a new phone or a $100 credit towards a new digital phone.
4 5945 1988 Toys R Us has prices year-round that are 25% below list prices.Toys R Us' pricing policy is to be preemptive, to sell at such low prices that no one will even try to compete.
5 7841 2004 Netflix has built a loyal following and has been briskly adding new subscribers to its rolls, despite the alternatives open to consumers. The company attributed its improved subscriber growth to the Nov. 1 price cut in its monthly subscription fee to $17.

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