Reduce Price to Improve Revenues and Margins




No. SIC Year Notes
1 1021 1991 At the beginning of hostility, there were two price points: PrL and SL. Initially, Standard Leaders (domestic producers) lost share to Price Leaders (imports). By meeting the import price in 1984, they essentially eliminated the PrL price point and made the industry 100% SL. In this industry, win/loss as a result of price point coverage was a domestic/foreign issue rather than a competitor specific issue. Because price was the primary benefit offered by imports, once the domestic price dropped low enough, customers received better performance at what was a similar or only slightly higher price.
2 1311 1987 Leader (Saudi Arabia) holds price lower than market would bear to thwart new entry.
3 2111 1993 Announced price war in the cigarette business. PM announces aggressive pricing policy for long-term profitability. PM has 49% of cigarette market; RJR Nabisco, 27%. Most premium brands have lost share to discount cigarettes.
4 2385 1998 Columbia Sportswear is maintaining prices and cutting profit as the weak yen hurts its Japanese business.
5 2834 2008 Britain's state-run health service agreed to pay for the lung-cancer drug Tarceva after the maker, Roche Holding, matched the price of an older, less-expensive drug. Initially it was too expensive to be made available to patients. Tarceva worked out to be about $3,700 more expensive than Sanofi-Aventis Taxotere for an equivalent course of treatment.
6 3577 2005 Hewlett-Packard is responding to an aggressive onslaught of printer competitors with a set of price cuts and other promotions on some of its printers.
7 3674 2001 Intel is fighting Advanced Micro Device's recent price cut of 49% on some products by introducing faster chips and cutting prices by 54% on some products. Consumers, however, may not need such fast products.
8 3861 1989 Kodak once set prices at will on everything, but has been forfeiting increases to stave off Fuji and others.
9 3944 1996 Sega cut the price of its Saturn machine to $200 after rival Sony cut the price of its PlayStation to $200.
10 4213 1980 Overnite was the first to commence heavy discounting in the LTL segment in late 1980, in response to smaller carriers' sporadic discounts.
11 4512 2002 AMR corporation, American Airlines cut business fares by 43% in several of its markets and raised leisure fares at the same time. The fares are still higher than discount carrier fares but the gap has been narrowed considerably.
12 4812 2009 Virgin Mobile USA Inc. matched its rivals with a $50 unlimited wireless calling plan. The Warren, NJ provider over prepaid wireless service cut its "Totally Unlimited" plan by $30 to put it on par with similar plans offered by a number of prepaid players.
13 5331 2008 Retail price wars start early for Christmas toy sales. Amazon and the individual toy sellers it promotes match Wal-Mart's low prices, but the discounts were offset by shipping charges.
14 5411 2002 In recent years, as Wal-Mart Stores Inc. has added groceries to its all-in-one stores, the discounter has made big inroads. Kroger, Safeway, and Food Lion are all cutting costs and lowering prices to lessen Wal-Mart's impact. Wal-Mart has constructed more than 1,000 of its Supercenters and now claims the No. 1 spot in the U.S. grocery market. Counting grocery sales in all its outlets Wal-Mart last year held a 16% share of the market, with an estimated $80 billion in food sales. It is adding another 185 Supercenters this year. Kroger Co. and Safeway Inc. began cutting prices to match Wal-Mart. These price cuts are in turn decreasing their profits
15 5943 1990 To fight office superstores, Quill lowered prices by an average of 18%, reducing gross margins by almost 10 points to about 30%, and net profit to almost zero.
16 6211 2005 Since 2004, Schwab has repeatedly lowered its prices on stock and option trades to bring its fees closer to the rest of the industry.
17 6321 2001 Between 1995 and 1997, term life rates fell by as much as 15% as the availability of online comparisons forced insurers to get competitive.
18 7514 1988 Avis is starting a price war aimed at Hertz in an attempt to move into the number one position. Avis snatched at least three of Hertz's big accts w/ discounts of 20-30%. In response, Hertz grabed 2+ of A's big accounts on price.
19 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.
20 8099 1988 More hospital emergency departments are offering competitive pricing to regain business lost to free-standing clinics. One Iowa emergency dept. cut charges for treating a sore throat to $30 from $67, but its charge for CPR went from $150 to $400.

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