Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

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

CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE

No. SIC Year Notes
1 4700 2003 Convention hotels are being hurt by sites like Hotels.com and Travelocity which offer room bookings for 50% cheaper at different hotels. These online companies can do this because there are low hotel occupancy rates across the country.
2 4813 2003 AT&T will offer VOIP to its customers. This will allow the company to sell cheaper local and long-distance service without having to rent local-phone lines from its archrivals. The company plans to have the service available in 100 markets.
3 5051 1999 Until recently, only the car companies, steel's biggest customers, could come close to naming their own price for steel. Now hundreds of small and midsize steel buyers are circumventing all the middle men and paying less for their steel by visiting MetalSite or its rival e-Steel, websites dedicated to selling steel. Because the steelmaking process is not perfect, a producer often churns out more steel than is necessary to fill particular orders or shipments. The overage traditionally has been warehoused or recycled but either way consumes inventory space and is a drain on company profit. With the Web site, the companies can quickly unload excess and secondary steel, accounting for about 15% of the steel sold in the U.S.
4 5311 1989 Goldblatt's carries for instance: Bloomingdale's briefs it received due to change in packaging (sold at $2.99, a full $10 off department store prices), irregular Neiman Marcus sweaters.
5 5311 2008 Discounters and outlet stores are stocking some of the best goods at some of the best prices, due to the sharp falloff in consumer spending that has forced full-price stores to unload excess inventory. Overstock.com, an online discounter, will be selling items at 15% to 45% off full retail price for the holidays. The company has been snapping up high-end apparel, boots, shoes and handbags that it has never carried before. Its inventory of shoes alone has swelled to 55,000 pairs from fewer than 2,000 before September. Retail Ventures stores are offering up to 75% off designer shoes compared with discounts of up to 50% last year. Stein Mart recently rolled out a premium jeans section in all its stores.
6 5400 2009 Instead of stocking an equal number of value and high-priced wines when its customers demanded less expensive wine, A Taste of Wine decided to make this change: about 75% of this store now consists of value-priced bottles and just 25% are higher-priced. The business is still going strong because it did not alienate customers who still wanted to buy luxury items.
7 5912 2004 Costco has the lowest prices for drugs at $69. Wal-Mart is next at $82, then Target at $85, then Kmart and Raley's at $89, then Savon Drugs at $97. The average drug price is $100. Safeway is at $101.
8 5942 2005 The Internet is creating a new and fast-growing category in the book-selling market – the used book. There are currently 70 “new and used” copies of “The Widow of the South” for sale on Amazon. Although the novel carries a retail price of $24.95, there are several copies of Amazon described as “new” being offered for $16 or less. The issue is so contentious that several literary agents are calling for authors and publishers to find some way to share in the revenue created by the used-book market.
9 7514 1987 Companies like Alamo, Dollar, Thrifty and General are off-airport companies shooting for vacationers/leisure travelers. They avoid airport fees, pass through cost savings in the form of lower price.
10 7832 1991 Cineplex launched a plan to offer cut-rate screenings of recently released feature films, movies that won't compete directly against core business of showing first-run movies. So far sales are up.
11 7841 1991 Instead of the traditional two nights for $3, they now charge $2.50 for one night on new releases. Now more customers get new releases. This hurts small stores who got business when Blockbuster ran out of stock.

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