Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

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

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

No.	SIC	Year	Notes
1	4841	2004	Satellite TV is trouncing cable in the battle for subscribers in rural and urban areas alike. Satellite's success partly reflects the appeal of its offerings, especially to price-conscious households. EchoStar, for example, sells a package of 60 channels for $29.99 a month with free installation. And all these channels are delivered over crystal-clear digital signals. A cable package with roughly the same number of channels – but typically in fuzzier analog format, usually costs more than $40. Satellite also has overcome what used to be its greatest drawback: a lack of local channels, including such desirable programs as the local news. Both DirecTV and EchoStar have been steadily adding local channels since Congress passed a law allowing them to.
2	5331	1986	Price Club's merchandise is sold at an average margin of about 9.5%. Compares w/ avg. margin of 50% at dept. stores, 30% at other discount stores and 20% at food retailers.
3	5541	1982	In 1982, Atlantic Richfield Co. eliminated its credit card service and began carving out a niche as the cheapest supplier in the West. It doesn't sell super-hi octane gas and it doesn't do repair work. Arco's sales up fourfold since 1982.
4	5734	1986	Many software shoppers find software at deep discounts from mail-order houses with toll-free numbers.
5	5943	1989	Office-supply superstores offer prices 20% to 75% lower than the manufacturers' suggested ones.
6	5999	2002	Overstock says it sells most of its products at 60% below retail. The company lists 6,000 items on the site, up from 4,000 a year ago. Smart Bargains carries much the same types of products as Overstock. ReturnBuy sells only consumer electronics.
7	6021	2005	For an online bank that opened in the US less than five years ago, ING has collected 2.2 million US customers and $29 billion in deposits. The bank aims to pay the highest rates on savings accounts, 2.6% now vs 0.56% for the average money-market account at a bank.
8	6531	2002	Last year, YHD Foxton Inc (Internet-based Broker) sold 2,500 homes, up 50% from a year ago. YHD Foxtons Inc., West Long Beach, NJ charges just 2% commission instead of the more typical 6% relies on a high volume of sales to be successful. And in 15 cities including Boston, Los Angeles and Washington, D.C., zipRealty Inc., of Emeryville , Calif., which charges 4.5% commissions, has expanded revenues 363% in the past 12 months.
9	8000	1985	Ipco's Sterling Optical Chain offers lower prices and convenient hours and locations. An average tab at Sterling is 30% less than at a private optician.

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