Final Customer Purchasing from the Product Producer

Use Steps: Use steps include all the customer's value added activities or the consumption of the product itself. These steps include all the costs the customer incurs in employing the product in its intended use.

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 performance benefits

Reduce Convenience benefits

No. SIC Year Note
1 2752 1989 Merrill has focused on the less time-sensitive business of mutual fund printing and low-end jobs. As a result, the company is able to farm out print jobs to other printers (not time-sensitive work like IPOs and M&A) and keep fixed costs (Lab.&Equip) down.
2 4512 1992 Southwest's FUN FARES provide savings on airfare in exchange for customer's commitment to travel on the specific flights for which reservations were made. Tickets non-refundable and cannot be upgraded, downgraded, or exchanged for other flights.
3 4512 2002 American Airlines, struggling to end its huge losses, will adopt a new flying strategy at hub airports, spreading out flights to boost efficiency. The strategy is called a "rolling hub," and it boosts passengers' sitting time before a flight in order to more quickly unload and load a plane.
4 4512 2002 Southwest Airlines uses a highly efficient operating style. Southwest has loads of connecting passengers, but it still brings planes into airports and unloads and loads them within 20 minutes. Passengers may wait two hours for their next flight. But the efficiency helps give Southwest the lowest unit costs in the industry, and the most-efficient labor force and airplane fleet.
5 4522 2001 Executive Jet's NetJets fractional private jet ownership program has over 2,500 customers, all of whom have guaranteed availability 365 days a year with as little as four hours advanced notice. NetJets owns and operates about four aircraft of each model, as well as chartering other companies' planes during peak holiday times, just for safe measure.
6 4522 2001 The newest trend in air travel is fractional private jet ownership, where customers purchase a share of a jet for a reduced-but still quite high-price. For example, the 18-passenger Boeing jet equipped with two bedrooms, three bathrooms and two showers, can fly long intercontinental flights nonstop It is available for $6.1 million for 100 hours plus a monthly management charge of $41,000 and $4,360 an hour.
7 7011 1993 Economic slides in California and Japan (which account for 30% of Hawaii's tourists) have hurt the Hawaiian resort business; time share and golf resorts are growing.

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