Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: REWARD CUSTOMERS
CHOICE 2 SEGMENTS: LOSS LEADER SEGMENT / A LOW PRICED PRODUCT TO GET THIRD PARTY BUSINESS
CHOICE 3 COMPONENT: WAIVE FEES OR MAKE A ONE TIME OR PERIODIC PAYMENT
| No. | SIC | Year | Notes |
| 1 | 3674 | 2003 | Big players moving into Wi-Fi are quickly achieving economies of scale and reducing the potential for others to make healthy profits. Some giants are using Wi-Fi as a "loss leader": Intel, for example, sells its Wi-Fi chips to computer makers at or below cost. That tactic is designed to boost sales of laptop computers with other Intel chips that are more profitable for the company. |
| 2 | 7600 | 1992 | Many customers will buy a new piece of electronic equipment rather than get a broken one repaired after the warranty has run out. Service dealers only receive 1/2 to 3/4 the money for warranty work as non-warranty, because manufacturers demand "good faith" discounts. Many independent service dealers are losing money doing warranty repairs, which can account for half of their business or more. Some dealers are taking manufacturers to court over it. Prices for home electronics products have dropped and the cost of repair work has risen. |
| 3 | 7812 | 1999 | Networks typically license prime-time shows for less than their production cost, a deal producers accept in hopes of the show's running enough seasons to accumulate 100 episodes, after which it can be sold in syndication. |
<< Return to Choice 3