Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 SEGMENTS: INDIVIDUAL CUSTOMER SEGMENT / A LEADING CUSTOMER IN THE CUSTOMER'S INDUSTRY
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 2000 | 1990 | Traditionally, spice peddlers have to pay the store in return for a one-to-three-year contract for shelf space. This payment often takes the form of a special "discount" ranging from 2% to 25% of the wholesale price, and is often paid up front. |
| 2 | 2000 | 2004 | A supermarket must make room for a new product, typically by getting rid of something else, which is risky. The problem with slotting fees is that they are unscientific and can be manipulated. Slotting fees for bulky items in stores could reach $50,000 or more. They have become another way for retailers to make money from suppliers, rather than from customers. |
| 3 | 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. |
| 4 | 3292 | 1993 | An industry leader considered moving towards customer-group pricing, which had the potential to save significant operating costs. However, this model would result in lost profits. Group pricing brings high-priced customers closer to low-priced customers. Instead of group pricing, the company would attempt to meet only real prices for the largest customers and would respond differently to customer requests for price discounts depending on a customer's relative importance. |
| 5 | 3312 | 1982 | It used to be that steel makers set the prices for GM – now GM is largely dictating the price it is paying for steel. In 1982 it is expected to pay on average 3% less. It used to be that all customers were charged one uniform price. |
| 6 | 3571 | 1992 | IBM's mainframe systems business, source of 60% of IBM profits, has peaked. Large customers using fewer mainframes in fewer data centers. Price discounting has reached 50% on some deals in industry. IBM to cut sales, admin. |
| 7 | 3714 | 1991 | In 1989, Chrysler replaced its competitive bid process with target costing for each specific component. |
| 8 | 3714 | 2000 | ArvinMeritor Inc., the largest maker of heavy-truck axles, said DaimlerChrysler AG is likely to have more success in obtaining a gradual 15 percent cost cut from suppliers than an immediate 5 percent reduction. Suppliers say they can't afford to take an immediate 5 percent cut at a time of declining U.S. auto sales, though they may be willing to spread the reductions out over a longer time frame. The automaker made the demand as it lost at least $1.75 billion in the second half of last year on increased incentives and declining demand for its vehicles. |
| 9 | 4931 | 1992 | Increased competition promises huge benefits for customers in the form of better rates. American National Can received a 25% discount from Cleveland Public and saved $240,000 per year. |
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