Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: PRODUCT SYSTEM COMPONENT SEGMENT / SERVICE PAYMENTS

CHOICE 3 COMPONENT: WAIVE FEES OR MAKE A ONE TIME OR PERIODIC PAYMENT

No. SIC Year Notes
1 5092 2000 Pets.com has spent $21 million over the past year on advertising and the company has gotten a visibility boost from its alliance with Amazon.com, which owns 30% of the company. However there is one problem, the financial results are dismal. To grab market share the company is offering shipping to the East Coast well below costs, this has helped boost sales to an annual rate of $20 million.
2 5961 1995 A few mail order catalogs are temporarily eliminating shipping charges to motivate early Christmas shopping. Sara Lee's Coach unit is offering free shipping and handling on holiday orders, waiving the usual $6.50 charge. Brookstone is testing two methods. Some customers get free shipping while others are charged a flat $5 fee, regardless of the size of the order. Lands' End is offering free delivery of additional purchases to shoppers who pay standard shipping to the first address on their gift list. L. L. Bean is offering some customers free shipping on orders placed by Nov. 19.
3 5961 1995 Brookstone is testing two methods. Some customers get free shipping while others are charged a flat $5 fee, regardless of the size of the order. Lands' End is offering free delivery of additional purchases to shoppers who pay standard shipping to the first address on their gift list.
4 6211 1998 Small investors with less than $10,000 in assets can avoid the annual fee if they invest $100 a month through Schwab's automated investment plan.

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