Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: LOSS LEADER SEGMENT / A SINGLE-YEAR ROUND PRODUCT

CHOICE 3 COMPONENT: PROVIDE A FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY

No. SIC Year Notes
1 5812 2009 Restaurant chains are offering more aggressive promotional deals as they try to tempt diners in lean times. Wendy's/Arby's Group's Wendy's chain is running a so-called reverse auction online through April 3 in which consumers can get flat-screen televisions and Xbox game consoles for 99 cents. The bidding starts at the retail value of the item, and decreases in 99-cent increments every time someone places a bid. The person who places the last bid wins the item.
2 5942 2002 Early in 2002, Amazon waived delivery charges on orders of $99 and above. Later in the year, the minimum order size for free shipping dropped to $49 and then to $25. Online buyers cite shipping discounts as more likely than any other price change to encourage them to use online retailers. As a result of this change, Amazon's third quarter revenue jumped by a third from a year ago. And the company is now generating positive free cash flow.
3 6531 2008 Free cars and speed boats, gas cards packed with thousands of dollars, personal-training sessions — homeowners are trying to reel in potential buyers. A real-estate development company ORE International LLC offers buyers 10 personal-training sessions at any of its developments with gyms. Additionally new owners will receive a $500 American Express gift card and a romantic getaway to the Old Drovers Inn, a historic upstate New York bed and breakfast. In one project near Prospect Park Brooklyn buyers get free bicycles.
4 6531 2008 Free cars and speed boats, gas cards packed with thousands of dollars, personal-training sessions — homeowners are trying to reel in potential buyers. Shea Homes, a real-estate developer, offered to install solar panels for buyers. Previously the company offered a Toyota Prius for homes which range from $180,000 to more than $1 million. Rather than wow consumers with big upfront discounts, the builder opted to lower buyers' ongoing payments. Solar panels can cut an electric bill by up to 60%.
5 6531 2008 Free cars and speed boats, gas cards packed with thousands of dollars, personal-training sessions — homeowners are trying to reel in potential buyers. A real-estate agent offered an all-expenses-paid trip for two to France to the agent who delivered the home's next owner.
6 6531 2008 Free cars and speed boats, gas cards packed with thousands of dollars, personal-training sessions — homeowners are trying to reel in potential buyers. The seller of a 6,238-square-foot estate is giving away a brand new Porsche Boxster which retails for about $50,000. If you want the Porsche, however, you must pay the listing price of $2 million.
7 6531 2008 Free cars and speed boats, gas cards packed with thousands of dollars, personal-training sessions — homeowners are trying to reel in potential buyers. One seller is offering to install a pool, a patio, and a professional grill should a new buyer want them. If they don't he'll knock $100,000 off the $1495000 price tag for a home built in 2006 with 6 bedrooms, 6.5 bathrooms, and a three-car garage.
8 6531 2008 Free cars and speed boats, gas cards packed with thousands of dollars, personal-training sessions — homeowners are trying to reel in potential buyers. The seller of a $700,000 three-bedroom home will professionally maintain the yard for six months. He'll also throw in a new washer and dryer. "A lot of people don't have their own lawn mowers until they can get set up for a while." He's also considering sweetening the deal with flatscreen TVs and furnishing the home for the new buyer. "Saving people a little time is pretty attractive."
9 6531 2008 Free cars and speed boats, gas cards packed with thousands of dollars, personal-training sessions — homeowners are trying to reel in potential buyers. A real-estate development company ORE International LLC offers buyers 10 personal-training sessions at any of its developments with gyms. Additionally new owners will receive a $500 American Express gift card and a romantic getaway to the Old Drovers Inn, a historic upstate New York bed and breakfast. In one project near Prospect Park Brooklyn buyers get free bicycles.

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