Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: PRODUCT PURCHASED SEGMENT/PRODUCT SYSTEM COMPONENT SEGMENT


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 2086 1991 Coke and Pepsi subsidize the costs of customers' soda marketing and equipment, detrimental to small rivals.
3 2721 1992 Include free "value-added" services to appeal to bargain shoppers, without lowering price. Ex: a magazine's offering advertisers free merchandising tie-ins when they buy ad space at rate-card prices.
4 2731 1987 PacBell offers to write and design a new or additional ad free of charge.
5 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.
6 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%.
7 3571 1995 Cabletron is offering free network consulting to 3Com and Chipcom customers.
8 3577 1988 Kodak offers a 9 month free service contract.
9 3577 1989 Fujitsu is offering a sale on its printers (gives away a free cartridge).
10 3715 2003 Volvo has increased penetration of its Volvo engines in Volvo-brand trucks from 10% to about half, the rest being sold with Cummins engines. Customers get up to $1,500 off the cost of a Volvo truck-which range in price from $70,000 to $120,000-if they pick a Volvo engine.
11 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 month within the local calling area. The deal requires a one-year contract, and promotional rates are only good through Dec. 31.
12 4812 1998 Omnipoint Corp. recently launched a "no monthly fee" prepaid cellular phone service.
13 4813 1991 Pacific Bell offers a Custom 800 number connection for free. Monthly and usage charges apply.
14 5942 2002 Early this year, Amazon waived delivery charges on orders $99 and above. Later, the company dropped the minimum order size to $49, then to $25–about the price of two hardback books or CDs.
15 6021 1997 Commerce Bancshares Inc. offers free checking to try to lure customers from NationsBank, a fee-assessor that moved into the area.
16 6021 2003 Bank of America ended its charges for customers to pay bills online last May when it found out it could get more of their business if it offered the service for free.
17 6162 1994 Lenders are offering rates in 7% range, slashing points, reducing fees. Others are reducing closing costs.
18 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.
19 7372 2005 Microsoft Corp. said it will begin offering free software for combating "spyware" and viruses, responding to concerns about security flaws in its products but sending jitters through other makers of antivirus software. Last year, Microsoft acquired Giant Company Software Inc., a small NY maker of the antispyware product. These moves rattle traditional sellers of security software, like Symantec and McAfee.
20 7991 2009 Health clubs are another area where people have added services. On average, membership costs have fallen- to about $402 a year in 2007 from $422 in 2003. But overall health-club revenue was up, largely because members were buying more services, including personal training, massages and nutrition counseling.

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