Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

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

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

No. SIC Year Notes
1 1521 2006 Demand for prefabricated houses are on the rise as traditional homes become more expensive to buy and build. Prefab homes are 10% to 25% cheaper than traditional homes, not including land. What's more, as interest rates rise, household budgets will get squeezed, and some owners will begin to trade down to cheaper manufactured homes. Clayton Homes, along with Champion and Fleetwood Enterprises, together control around 80% of the $7 billion market.
2 2771 1998 At factory card outlets, all cards are 39 cents every day. Dollar General and Family Dollar are selling them two for a dollar.
3 2893 2005 More retail cartridge stores are springing up as consumers look for cheaper refills. Printer ink has always been expensive – ink and toner supplies made up more than 50% of fiscal 2004 profits for Hewlett-Packard and Co, although they brought in less than a quarter of the company's $80 billion in sales. But now, retail stores are offering to refill cartridges at half the price. Cartridge World just passed 1,000 stores worldwide, and has opened 275 stores in U.S. since mid-2003, generating roughly $300 million in sales. Its stores can earn up to $80,000 a year per store, even after paying the 8% franchising fee. According to Lyra Research Inc., the retails chains have already stolen 5% of the $59 billion global market. Together with knockoff brands, this aftermarket could rise from 23% in 2004 to 31% in 2009.
4 2893 2005 More retail cartridge stores are springing up as consumers look for cheaper refills. Currently, a new cartridge from HP, Canon, or Lexmark costs more than an ounce of Chanel No. 5 or Dom Perignon champagne. Most of Cartridge World outlets offer refills and clones that are cheaper than brand-name cartridges. The cost to refill a brand-name product usually runs 40%-60% of the cost of a brand-name product. An HP inkjet cartridge costs $30, but a refill at Cartridge World in Texas will cost only $16.50.
5 3241 1991 Imports grew their share quickly by offering an average price discount of 17% between 1985 and 1988, the years that imports had their highest market share. Imports began to lose share in 1989 due to anti-dumping regulations that levied tariffs of 58% on Mexican cement and up to 83% on Japanese cement. Imports lost their share as their price uniqueness was removed and they offered no convenience.
6 4813 1993 5 weeks ago, MCI announced a service that offers low-cost collect calls by dialing a toll-free number, 1-800-COLLECT. MCI boasted that its service would be 26% to 40% cheaper than traditional collect calls.

<< Return to Choice 3