Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: REWARD CUSTOMERS
CHOICE 2 SEGMENTS: LOW DEMAND PERIOD SEGMENT / INDUSTRY RECESSIONS
CHOICE 3 COMPONENT: EXTEND A PAYMENT TERM
| No. | SIC | Year | Notes |
| 1 | 3711 | 2001 | General Motors Corp.'s decision to keep its factories running and to fire up a massive sales blitz, featuring 0% financing for the next five years is widely credited with helping the U.S. economy avert a deeper slump following to the September 11 attacks. |
| 2 | 3711 | 2001 | Shortly after the terrorist attacks in September of 2001, General Motors unveiled its "Keep America Rolling" plan which offered car buyers free financing for up to five years, an average savings of $3,600 per vehicle. They introduced the program to stimulate demand but it has hit ailing rivals Chrysler and Ford hard. Both had no choice but to match GMs deals but they have not seen the volume boost. Chrysler's market share dropped from 14.9% to 11.8% in the year ending in September of 2001 while GM's sales are moving up and it is gaining market share. |
| 3 | 5632 | 2009 | Some companies are allowing regulars to stagger payments or place smaller orders, and even throwing in free services to keep long-time customers interested. With fewer new clients coming in, small businesses hope that holding onto regulars will help maintain stability and possibly boost sales when the economy bounces back. Faryl Robin LLC, a New York company that sells high-end women's shoes, is giving better terms of credit to retail customers with whom it has had a lengthy relationship. Some long-time customers can now pay a certain amount within its standard 30-day payment period, and spread the rest of the money over the next 60 days. The company also is allowing retailers to place smaller orders of shoes — nine pairs instead of the traditional 12 — and the founder is spending more time with regular customers, visiting stores to help sell shoes and training retailers' staff on sales techniques. |
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