Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: PRODUCT SYSTEM COMPONENT SEGMENT / SET UP CHARGES

CHOICE 3 COMPONENT: PROVIDE A FREE, OR HEAVILY DISCOUNTED, PRODUCT FROM THE COMPANY, OTHER THAN THE PRODUCT ON SALE

No. SIC Year Notes
1 1521 2006 As the housing market cools and interest and mortgage rates rise, contractors have found themselves with free time for the first time in years. As a result, they have been offering discounts and added services to increase sales. Services which once were available only for a fee, such as schematic drawings and detailed estimates, are now available for free. Contractors are also offering more personal service and reducing their commissions on supplies and fixtures.
2 2731 1987 PacBell offers to write and design a new or additional ad free of charge.
3 3571 1995 Cabletron is offering free network consulting to 3Com and Chipcom customers.
4 4812 1997 Cellular One has just begun promoting a limited-time offer of digital cellular service for $19.99 a month, 20% off its normal rate. The deal includes free activation and 500 free weekend minutes a month within the local calling area. The deal requires a one-year contract, and promotional rates are only good through Dec. 31.
5 4813 1991 Pacific Bell offers a Custom 800 number connection for free. Monthly and usage charges apply.
6 6162 1994 Lenders are offering rates in 7% range, slashing points, reducing fees. Others are reducing closing costs.

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