Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: REWARD CUSTOMERS

CHOICE 2 SEGMENTS: LOSS LEADER SEGMENT / A LOW PRICE ON ONE PRODUCT TO OBTAIN REVENUES FROM ANOTHER PRODUCT IN A MANUFACTURING OR SERVICE BUSINESS

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

No. SIC Year Notes
1 2711 1994 Giveaway magazines are taking advertising and classifieds away from traditional newspapers. These "free" guides for rentals, homes, cars, etc. attract fewer readers than a newspaper, but readers focused, looking for specific product to buy.
2 3571 1999 PeoplePC Inc. is the latest in an emerging group. These firms give consumers PCs in exchange for signing them to long-term Internet service contracts. Unlike some rivals, PeoplePC won't sell many ads on its Web site. Instead, it plans to get revenue from Internet service and from fees for the sale of goods made via its Web site.
3 5961 1999 Free-PC gives away personal computers that permanently display on-screen ads.

<< Return to Choice 3