Reduce Price to Improve Revenues and Margins




No. SIC Year Notes
1 2000 1993 Low prices on branded gum left little room for private labels to make inroads on name brands.
2 2844 1990 Rival Remington Products and others began selling rival products of Epilady. EPI countered w/ a $40 version of the Epilady aimed at mass-market retailers. To hang onto dept. store customers, it added a deluxe, 3-speed $89 model.
3 3441 2002 Wildeck, Inc. a maker of metal guard rails and material lifts for factories and warehouses developed a product to keep forklifts from destroying the corners of racks on factory floors. A competitor came out with a similar product made from lighter steel and priced 15% lower. Rather than dropping its price Wildeck introduced a "light" version of its protector than sold for less than the competitor's product. This low price product attracted price conscious buyers who the company then educated on the advantages of buying the heavier duty products.
4 3571 2000 Palm Inc. is planning on introducing a new entry level organizer. The new organizer will have a lower base price than previous Palm models, in hopes of competing with Handspring's Visor line.
5 3577 2004 A UBS Warburg report says Cisco is stepping up price competition for 10-gigabit Ethernet switches, one of Foundry's main products. Last year, Cisco introduced products at half Foundry's prices. Foundry has fought back by introducing other data switch products at prices lower than Cisco's.
6 3695 1992 Another selective pricing front companies may use is a fighting brand. In the early 1990's Kao Corp. entered the diskette market with a low priced product. Rather than drop its prices, 3M launched a flanking brand of low priced diskettes called Highland.
7 3861 1989 Kodak specialized in microfilm machines costing as much as $35,000. With entry by Japanese into the low end of the market, Kodak began to market a $5000 machine. Afraid Japanese would enter low end of market and then steal hi end as well.
8 3861 2004 While printing at home still typically costs 60 cents for a 4-by-6 image, including the costs of ink and paper, big retailers generally charge below 30 cents and some online sites charge less than 20 cents. The result: This year only about 69% of printed digital photos will emerge from home printers like Hewlett-Packard's. By 2007, that figure may drop to 42%. Now, H-P is urgently shifting its strategy to recapture customers. When H-P entered the digital-photo business nearly a decade ago, it worried most about matching the quality of film snapshots – developing machines that could create high-quality images, but only slowly and at fairly hefty prices. H-P is aiming to cut in half, to 30 seconds, the time to print a 4-by-6 image. It's testing cheaper paper and ink. And it's trying to simplify the task of printing images directly from camera-cellphones by developing software that easily sends an image to a printer.
9 7375 1996 Over the last year, America Online and CompuServe have lowered prices and offered separate low-cost Internet-only services.

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