Reduce Price to Improve Revenues and Margins

CHOICE 3: USE COMPONENTS OF PRICE TO FURTHER LIMIT THE SPREAD OF THE LOWER PRICE

D. Change the Optional Components of Price

Provide a free, or heavily discounted, product from the company, other than the product on sale

No. SIC Year Notes
1 3571 2006 In order to encourage customers to buy PCs with soon to be outdated Microsoft XP, Microsoft and PCs makers are offering the Technology Guarantee program which provides any new Windows XP buyer with a free or cheap version of Vista upon its release.
2 4813 1998 BroadPoint Communications is offering free long-distance service to people willing to listen to recorded ads. BroadPoint's FreeWay service gives callers two minutes of domestic long-distance service for every 10- to 15-second ad they listen to.
3 5531 2002 Autozone hopes to get a boost from pushing the service side of its business. It will check your engine for free and tell you what's wrong with your car.
4 6141 2004 The financial services offered by Bankrate.com are free to visitors because advertisers pay to keep the site up and running.
5 7375 2000 Web portal companies which operate sites designed to be starting point for web surfers are using free Internet services as a way to draw more visitors to their sites. Four of the largest include Yahoo, Excite At Home, Lycos and Alta Vista.

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