Reduce Price to Improve Revenues and Margins

CHOICE 2: ISOLATE SEGMENTS RECEIVING THE LOW PRICE

A. Product Purchased Segments

Loss Leader Segment

No. SIC Year Notes
1 2711 2007 The NYTimes discontinued an online paid-subscription service which granted access to columns and archives. The Times believes that it will generate more advertising revenue by broadening the site's audience.
2 3571 1999 In February, Free PC jolted the computer industry when it said it would give away sub $1000 PC's made by the Compaq Computer Corp. that came with free internet to people who agreed to share personal data and be exposed to targeted advertising.
3 4813 2004 Prepaid firms such as TracFone and Virgin Mobil USA sell their mobile phones retail at below cost. Unlike big wireless companies, TracFone doesn't charge activation fees to start a service.
4 5331 2006 Wal-Mart began its 2006 holiday discounting in October by cutting prices on toys. Discounts on electronics and small appliances followed in November and the retail giant promised further discounts on basic apparel.
5 6021 2003 Washington Mutual allows other banks' customers to use its ATM machines without paying the customary $1.50 surcharge. But other fees still apply. Washington Mutual still charges its own customers $1.50 for using another bank's ATM.

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