Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: PRODUCT COST SAVINGS SEGMENT / MANUFACTURING BUSINESS FUNCTIONAL COSTS / MAKE COST

CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE

No. SIC Year Notes
1 2721 1989 To keep circulation up, Time has been pushing short-term subscriptions. The reason has to do with direct-mail marketing, where low price is more important than value. 22-week subscription at $17.39 easier sell than a full year subscription.
2 4813 2004 VOIP is making possible all manner of low or even no cost alternatives to traditional phone service, often with just as good quality. Vonage's rates are low. Its most expensive regular plan is $35 a month, which allows you to make unlimited calls in the U.S.

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