Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: RELATIONSHIP RENEWAL SEGMENT

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE

No. SIC Year Notes
1 1531 1996 Del Webb's studies show that 45% of their 80,000 homebuyers have moved more than once since turning 55. To keep them, the company keeps upgrading its floor plans and amenities, and offering discounts to those who buy another Del Webb home.
2 2751 1996 In the magazine and catalog printing business, term contracts apply. These are five year deals. But prices tend to drop at the end of the five years.
3 6300 2005 On renewal policies today, prices are twenty to thirty points lower.
4 6331 2008 As American International Group's new CEO prepares to break up the embattled insurance giant, he has declared that one piece is not up for sale: commercial insurance. With its lucrative multimillion-dollar-dollar policies for some of the world's largest companies, the unit has long been viewed as Air's crown jewel. But customers are nervous about AIG's future, and competitors are rushing to capitalize on AIG's battered reputation amid an $85 billion feder additional infusion of $38 billion from the Federal Reserve Bank of NY to cover the company's other obligations. The battle has already morphed into a price war. Insurance brokers whose clients' policies came up for renewal on Oct. 1 say AIG slashed premium rates by as much as 50% on key accounts.
5 7374 1994 Industry is one characterized by intense and growing price pressure. The largest merchants in the marketplace, who are the primary customers, are unprofitable for the service providers. Prices are falling at a rate of 20 to 30 percent a year as contracts are renewed and competitors gain customers.

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