Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: PERFORMANCE PERCEPTION SEGMENT

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE

No.	SIC	Year	Notes
1	2030	1994	We had to be anywhere from 10-15% cheaper than a premium brand competition, Tropicana or Minute Maid, to sell.
2	2300	2009	Eileen Fisher has asked her staff to consider a new model: renting department store space in order to control prices and inventory. The rift between department stores and many brands after decades of close cooperation could mean that shoppers will see fewer of those deep, early luxury-brand discounts that they have enjoyed for the past year. Luxury brands want to control when they take discounts and on which products. Eileen Fisher is encouraging department stores to use what she calls "scalpel markdowns"—where items that sell poorly are marked down quickly, leaving strong sellers at full price even as new inventory arrives.
3	2711	2003	The price shaver in today's newsprint market is pricing at $15 off on a $500 base price, or roughly 3%. The companies that are particularly bad at service may be as much as $30 off on a $500 base price.
4	2844	1992	Colgate copied P&G's upright toothpaste dispenser 1.5 years later. Colgate's upright sells for 15% less than P&G's neat-squeeze and 15% premium to regular tube.
5	3011	1994	Cooper prices at 1% to 1.5% off the market price to compensate for its lack of national name-brand recognition and advertising. Michelin has a reputation as a premium pricier, pricing at about 2% above the market price for its flagship brand.
6	3241	1991	It generally takes a 5-10% discount for a customer to talk to a new supplier and 16% discount to move the customer. Between 1985-1988, the average price for imports was 17% lower than domestic producers. When the tariffs began in 1989, the price of imports was 17% lower than domestic producers. When the tariffs began in 1989, the price of imports rose 9.2% and demand for imports fell.
7	3523	1993	JI Case is discounting 5-8% off the Standard Leader John Deere product. JI Case's CEO said in a 1989 article that "…(my) objective is to produce such a quality product that customers and dealers won't flinch when I raise prices on new models or refuse to sell my machines for less than the comparable John Deere models." According to a John Deere dealer, JI Case continues to discount today. Weak competitors such as Massey-Ferguson are discounting heavily, up to 15% off the John Deere price. In spite of the lower prices, Massey-Ferguson is still losing share.
8	3572	1985	When IBM stopped buying from Seagate in 1984, Seagate cut prices by 35%.
9	3577	2001	In 2001, makers and sellers of personal computer accessories slashed prices to clear shelves of excess inventory. This is key to a tech rebound. Sales of minidisk recorders with PC hookups soared in 2001 as did removable memory. Flat-screen monitors are also selling well.
10	3630	1992	Philips is offering discounts on appliances, knocking 12% off a $53 coffee maker.
11	3674	1994	Weaker product 66Mhtz having to drop price now that Intel and Advanced Micro Devices have higher frequency 80 mghtz chip out on market.
12	3711	1996	How much do one of these trucks go for? $70k and up depending on wheelbase. A Mack would be $70k, and a International might be $73k. So there’s quite a difference.
13	3861	1997	Last spring Fuji began slashing prices by as much as 25%. Fuji's explanation was that Costco, one of its five largest U. S. distributors, ditched Fuji for Kodak and the company had to unload 2.5 million rolls of film.
14	4512	2004	In a major shift, America West Airlines will add some new first class tickets that are 50% to 70% off the carrier's standard rate. The move is likely to trigger a fresh round of price competition, as bigger airlines act to match those fares, particularly on nonstop routes where they go head to head with America West.
15	4833	1997	Ad rates on network TV are an average of 25% higher for broadcast than for cable, even when the programming reaches exactly the same number of viewers.
16	5331	2001	ShopKo exercised restraint in the spring of 2001 when its new nylon track pants were not selling. Before, the company had resorted to small price cuts followed by monthly cuts until the product sold. Instead, it dropped the prices from $10.79 in early May to $9.75 in June. The pants sold out during the discount period without more dramatic price cuts.
17	5511	2009	Plunging auto sales are making this one of the worst times ever to sell cars. The Toyota Prius hybrid was hot last summer when gasoline rose beyond $4 a gallon, so Toyota Motor Corp. increased production. Today, however, falling gas prices have made the Prius much less desirable. Buyers have recently paid an average of $23,324 for the Prius Touring, the top-of-the line model. As Toyota launches a new Prius for 2010, today's price could be $8,000 lower than six or eight months ago. Some people paid $3,000 or $4,000 above sticker price for the Prius when fuel prices were near their recent peak. Now, prices have swung the opposite extreme.
18	5735	2009	New online-music rivals have also emerged, including Amazon.com Inc., which sells many songs at a cheaper price than iTunes and without copy protection, giving users more freedom with the songs they have purchased.
19	5990	1995	Outlets being squeezed by other retailers, particularly department stores, that have been offering frequent, deep discounts starting at 30% off. Discounts at outlet malls average 25 to 30%.
20	7372	2003	Weaker companies find themselves more vulnerable to the pricing pressures in the tech industry. Novell Inc. recently advertised a 50% cut in prices for one of its top products. Large corporations can also exploit this weakness and demand further price cuts or lowered maintenance fees.

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