Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: PRODUCT SYSTEM COMPONENT SEGMENT / COSTS OF SUPPLIES THE CUSTOMER USES WITH THE PRODUCT

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

No. SIC Year Notes
1 2086 1991 Coke and Pepsi subsidize the costs of customers' soda marketing and equipment, detrimental to small rivals.
2 3571 1989 Last week, DEC began bundling its database software free of charge when it sells a computer.
3 3571 1989 For individuals, Apple said it will offer rebates of up to half the price of peripherals like laser printers & external disk drives when purchased w/ certain computers.
4 3571 1991 Compaq cut computer prices by up to 34% and prices of key options, like extra memory and communications attachments, by up to 68%.
5 3577 1989 Fujitsu is offering a sale on its printers (gives away a free cartridge).
6 7372 1994 IBM plans to introduce a tailored, pay-for-use pricing system today on some of its mainframe software that could cut costs for customers by up to 30%. The pricing system is designed to encourage customers to migrate to the new technologies as quickly as possible, since price cuts are on software for new machines. New software pricing is tailored per application used on the operating system.

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