Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: PRODUCT COST SAVINGS SEGMENT / MANUFACTURING BUSINESS FUNCTIONAL COSTS / MAKE COST

CHOICE 3 COMPONENT: MAKE MORE THAN ONE CHANGE IN FUNCTION, RELIABILITY AND CONVENIENCE BENEFITS, ALONG WITH THE PRICE CHANGE

No. SIC Year Notes
1 2339 2006 Chinese factories are ramping up production of knock-off denim meant to compete with the expensive Japanese fabric that has become the hallmark of premium jeans. Chinese factories are starting to churn out denim with a similar appearance and texture – for about half the price. Japanese denim generally runs $5 to $12 a yard, depending on the finish, while Chinese denim is $2.50 to $3.50. Expensive labels from Kasil to Seven for All Mankind often tout the fact that they use Japanese denim, but that is now changing.
2 3571 1996 Mediatrends has software designed to provide various telephone services (Caller ID, message broadcasting…) priced at $4000 + hardware add-ons for $1600. A similar service from Active Voice is priced $25000.
3 3571 2003 Despite the PC market being mature and saturated, there are still business opportunities. Privately held eMachines Inc. has found a profitable niche selling low-priced desktop PCs at retail. In February, 70% of PCs sold at retail went for under $800. EMachines' PCs start at $399. The firm keeps prices down by using lower-cost components and not loading its PCs with extra features.
4 3577 2001 Recycled printer cartridges have created new industry, and companies such as GRC and Magnolia Ink are filling the niche. A new print cartridge costs between $30-$250 but a used one is 50%-60% less. This helps both the consumer and the environment.
5 4813 2000 About half of Net2Phone's revenues comes from international calls that exploit the artificially high rates charged by government run monopolies. In the U.S. the company began by offering customers long distance calling for 7 cents a minute and then 5 cents a minute. But eventually the large long distance phone companies dropped their rates.
6 6211 1987 Data Broadcasting charges $89/mo. to monitor the New York and American stock exchanges. That compares with $326 for PC Quote and $140 for Lotus' Signal.
7 7372 2009 Hewlett-Packard Co. and other PC makers are considering using software developed by Google Inc. to run some small computers, a move that would open a new front in the battle between the Internet giant and Microsoft Corp. PC makers are testing Google's Android operating system—which has so far been used to power mobile phones—for use in new models of so-called netbooks, inexpensive laptops that have become the fastest-growing segment of the PC industry. PC Makers' interest in Android is partly driven by the desire to maximize income on netbooks, which usually sell for less than $500. Companies like H-P can spend $15 or more per netbook for Windows, cutting into already-thin margins. Another driver is the possibility of offering netbooks at lower prices; industry executives predict that hardware without Microsoft's program could sell for less than $200.

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