Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: PRODUCT COST SAVINGS SEGMENT

CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE

No.	SIC	Year	Notes
1	1531	1997	Centex will ship in Cavco homes built in a factory, and then install them on permanent foundations on the lots. The result: a 15% to 20% cost saving for buyers.
2	2037	1989	There are several large private label companies. Minute Maid also does business in the food service sector as does Tropicana. Citrus Hill does not. This is an example of standard leaders covering multiple price points.
3	3500	2002	Terex's strategy is based on the idea that customers are more interested in the capability and price of the equipment instead of the innovations. Therefore, Terex produces no-frills machinery and sells it at lower prices than rivals.
4	3577	2001	Recycled printer cartridges have created new industry, and companies such as GRC and Magnolia Ink are filling the niche. A new print cartridge costs between $30-$250 but a used one is 50%-60% less. This helps both the consumer and the environment.
5	3612	1995	ABB found that naked solutions enabled it to charge less for power equipment & heavy industrial equipment than for the standard package. This helped it gain the business of companies who then often agreed to trade up by buying optional services.
6	3679	1996	Hunt Technologies' new meter reader, the Turtle, costs less than half the price of most competing products.
7	4512	1991	Southwest last month introduced a $20 fare between Oakland and Burbank w/ a 21-day advance purchase requirement.
8	4522	2006	Flight Options includes discounts on the hourly rate for long-haul flights and simpler fuel pricing.
9	4700	2003	Convention hotels are being hurt by sites like Hotels.com and Travelocity which offer room bookings for 50% cheaper at different hotels. These online companies can do this because there are low hotel occupancy rates across the country.
10	4841	2004	Satellite TV is trouncing cable in the battle for subscribers in rural and urban areas alike. Satellite's success partly reflects the appeal of its offerings, especially to price-conscious households. EchoStar, for example, sells a package of 60 channels
11	5311	1989	Goldblatt's carries for instance: Bloomingdale's briefs it received due to change in packaging (sold at $2.99, a full $10 off department store prices), irregular Neiman Marcus sweaters.
12	5500	1986	Auto auctions offer big savings but also contain big risks. They rarely guarantee vehicles & don't let prospective buyers take the cars for a test drive. Sellers often use auctions to unload cars with hidden flaws.
13	5600	1990	Ross sells off-price family apparel at prices averaging 30% to 40% less than department stores.
14	5735	2007	Many movie studios are reluctant to put their films up for rent or sale on Apple's iTunes service because of Apple's pricing. Apple generally charges $14.99 for new titles compared with $18 for a new DVD, undercutting income for the studios.
15	5912	2004	Costco has the lowest prices for drugs at $69. Wal-Mart is next at $82, then Target at $85, then Kmart and Raley's at $89, then Savon Drugs at $97. The average drug price is $100. Safeway is at $101.
16	6141	2001	AmeriCredit Corp. uses specially tailored data to create their 12 different models for pricing and underwriting, which sets loans at rates between 10% & 25%.
17	6321	1991	A handful of companies have persuaded HMOs to charge on a fee-for-service basis, instead of taking the usual pre-paid fee that covers employees even if they do not need medical attention. The companies share the risk of financing medical costs.
18	7375	2004	Microsoft also offers a stripped- down service called MSN Plus for $5.95 a month but it lacks most of the compelling features of Premium except for the larger e-mail attachments.
19	7841	1991	Instead of the traditional two nights for $3, they now charge $2.50 for one night on new releases. Now more customers get new releases. This hurts small stores who got business when Blockbuster ran out of stock.
20	8000	1985	Ipco's Sterling Optical Chain offers lower prices and convenient hours and locations. An average tab at Sterling is 30% less than at a private optician.

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