Final Customer Purchasing from the Product Producer

Acquire Steps: Acquire steps include all activities the customer completes preceding the use or the consumption of the product. These steps include the customer's efforts needed for evaluation and acquisition of the product.

Resources: Reduce resources required for the use of the product

Money – Reduce the money the customer uses with the product. For more ideas on using pricing, please see the Improve/Pricing section of StrategyStreet.

A. Reduce the level of payment for use of the product

Reduce price for a comparable product

Package functions for lower cost per function used

No. Year SIC Note
1 2001 3571 As the cost of personal computers and servers drop, manufacturers seek profits in high margin enterprise software and services. Dell is packaging enterprise software and support services to boost sales to big corporations and government customers. Dell will only install and support a select group of applications. This is part of an effort to make further inroads with big-business customers against rivals Compaq, Hewlett-Packard and IBM. The company is able to undercut the prices of competitors.
2 2002 3571 Hewlett-Packard will retain its market share leadership by bundling PCs with other products and services for companies, by competing on price, and by innovating for consumers.
3 2003 3651 Consumers are making the switch from bulky computer monitors to the flat panel displays faster than the industry expected. Revenue for sales of flat panels also called liquid crystal displays will pass that of cathode ray tube monitors. Personal computer makers are pushing the shift to LCD monitors by offering PC bundles that include the flat-panel displays. The makers have been able to pass on lower prices they are charged by their suppliers, who have increased their production capacity and lowered costs.
4 2004 3861 Now H-P is trying another price-cutting strategy, offering a discount to consumers who buy paper and ink together. H-P began selling a bundle of 280 sheets of photo paper and two cartridges for $80, down from $150, if the items are purchased separately. H-P says the combination reduces the cost of a 4-by-6 digital print to 29 cents, from 60 cents.
5 2004 4813 Verizon began selling consumers a package of DSL and pay-TV through an alliance with satellite broadcaster DirecTV. Both local Bells and cable firms view these bundle service plans as a key tool to hold onto customers.
6 2003 4813 Like most rivals, Sprint now offers unlimited local and long-distance calling for one flat rate. Prices start at $54.99. Customers can include unlimited wireless minutes for $149.99. Those deals give customers a 5% discount on wireless service. Sprint's goal, like other carriers, is to hold onto its highest-paying consumers.
7 1999 4813 Earlier this month, BellSouth Corp. launched bundles that include local-phone, Internet, cellular, and paging offerings. SBC said it will begin offering the bundles in additional cities throughout its Southwestern Bell and Pacific Bell territories in September and October. A "Home Phone" bundle, featuring local services and a variety of features such as Caller ID, will be available immediately in major markets throughout SBC's region.
8 1990 4813 In 1988, AT&T had Multi-Location Calling Plan that let cos. earn discounts based on the traffic volume from all their locations, not just the main office.
9 2004 4841 About 40% of cable's digital customer base also subscribes to its Internet services. Cable's bundling of services such as TV, Internet, phone and video on demand will keep the industry competitive with satellite. Satellite was late to the bundling game which as hurt them, although the are responding. DirecTV and EchoStar have teamed up with Verizon Communications and SBC Communications to offer bundled services.
10 2004 4841 Some telephone companies are now offering for $133 a month 70 digital TV and movie channels, 75 radio and music channels, high-speed internet access, local and cell phone services, and unlimited national long-distance calling on evenings and weekends.
11 2002 4899 Big local-telephone companies BellSouth and SBC Communications are increasingly promoting discounted packages of traditional landline service, combined with a Cingular wireless phone subscription. The three companies announced last week that they soon will offer a bucket of shared wireless and wire-line minutes to customers, essentially selling the two services as one product.
12 2004 4899 AT&T, MCI and other smaller companies offer local service in most cities and are heavily promoting package deals that include local, long-distance and high-speed Internet service, often at big discounts.
13 1998 5734 Gateway will offer customized personal computers for monthly fees of as little as $50, and allow customers to trade in or upgrade the PC after two years. The monthly fee, which will vary according to the options chosen, will include unlimited Internet access.
14 1998 7011 Homewood, which is chargeing $99 a night for its rooms, is one of the upscale extended-stay hotels. Guests get such amenities as videocassette recorders in their rooms, a free breakfast, and free wine and snacks in the evening.
15 1989 7514 Rental rates for corporate customers negotiating new contracts are about the same as a year ago. The biggest customers are getting the lowest rates.
16 2001 8999 Spherion handles recruiting, customer support and administrative chores to help their clients cut costs. Contracts last about five years and clients may save 25% to 30% through the partnership. Spherion moves operations to cheaper locations, rehires at most 85% of the original staff and each office can handle multiple clients, optimizing savings and profits.

<< Return to Acquire Steps