Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: PERFORMANCE PERCEPTION SEGMENT / OLD STYLES OR PRODUCTS

CHOICE 3 COMPONENT: OFFER A TRADE-IN ALLOWANCE

No. SIC Year Notes
1 3571 2002 Distributors and manufacturers are offering discounts and special promotions to move cell phone and handheld computer combos off of the shelves and into briefcases. Handspring Inc. offers a trade-in program that takes $100 off the Treo which sells for $399. Kyocera Wireless introduced rebates on its combo, dropping the price from$299 to just $99. Samsung also offers rebates of $50 to $100 on its SPH-1300 model that is sold through Sprint PCS. Through pricing, the manufacturers are trying to make the products mainstream and clear the shelves for newer, better models which will offer wireless networks, slimmer sizes and bigger screens.

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