Reduce Price to Improve Revenues and Margins




No. SIC Year Notes
1 2834 1993 Bristol-Myers will offer American Healthcare Systems significant discounts in return for a preferred status role (hospitals under American Healthcare Systems will be obligated to buy from Bristol-Myers). The relationship is under a 5-year contract.
2 3576 2001 Cisco sells products two ways: directly to big customers and indirectly through distributors. The gear is sold to distributors at from 38% to 42% off the list price, depending on how much they buy. Those distributors tack on an extra 10% when they sell to others. So the final customer may pay 30% to 35% under list for new gear.
3 4512 2005 A side effect of the air line fare cuts is many big corporate level contracts, which funneled a certain volume of business to preferred carriers in exchange for discounts of 8% to 12% may become obsolete. This may allow business travelers to shop around more with low cost carriers, though many companies are already tapping into those savings.
4 4813 1991 MCI beefed up computer systems to permit innovative residential calling services, such as the new Friends & Family plan, which offers 20% discounts on calls to pre-selected parties.
5 4813 1991 MCI's Family and Friends rate offers a 20% discount to any 12 #s of the customer's choosing–if both sides have MCI.
6 4813 1992 AT&T will subtract 10% of its fee on frequently dialed int'l calls. The catch is that the numbers called must be AT&T long-distance customers as well.
7 4813 1992 MCI says Friends & Family customers call 25% more than they used to, at least initially, and are 20% less likely to drop MCI.
8 4813 1993 MCI's "Friends and Family" program offers discounts to groups of MCI customers who phone one another: very successful. MCI share of US market has expanded 14% to 17%, while AT&T's has contracted from 68% to 66%. MCI has a sophisticated billing system needed to link accounts of customers from all over the country: AT&T doesn't (makes Friends and Family possible).
9 4813 1995 New MCI Friends and Family offers 50% off when you call other MCI customers in your designated calling circle.
10 4931 2000 offers to sell utilities at lower rates than can be generally found elsewhere by aggregating customers. New England Electric System sells electricity through Essential at 10% below competitors' prices.
11 5912 2006 Pharmacy-benefit managers pioneered the practice of offering patients incentives to bypass drugstores and deal directly with their own in-house mail-order pharmacies. They typically did this by offering mail-order customers discounts. In some cases, employers agreed to "mandatory mail" programs that required patients to use the PBM's mail-order pharmacies for their long-term medication.
12 5999 1991 When you make a purchase of $75 or more at The Sharper Image and charge it with the American Express Card, you receive 15% off.
13 6141 1987 Affinity credit cards offered through an agreement between card issuer and an organization that markets the card to its members. Interest charges for affinity cards ranged from 16.89% to 17.65% in mid-1987. Industry average: 17.24% to 17.98%.
14 6162 1993 Prudential Home Mortgage faces industry slowdown by moving to offering affinity programs.
15 7372 1986 Lotus reports that it is testing a site-licensing program with Exxon that doesn't involve copying. Microsoft soon will announce a "corporate licensing" plan under which big customers get a discount for guaranteeing a certain volume of business.

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