Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: REWARD CUSTOMERS

CHOICE 2 SEGMENTS: COMPANY REVENUE IMPROVEMENT SEGMENT / RECRUIT OTHER CUSTOMERS ON THE COMPANY'S BEHALF

CHOICE 3 COMPONENT: PROVIDE A FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY

No. SIC Year Notes
1 2721 1998 American Family Enterprises and Publishers Clearing House make money by selling magazines to sweepstakes entrants. For each subscription they sell – normally at the lowest price available to the general public – the companies generally keep between 75% and 90% of the price with the remainder going to the magazines. The magazines themselves profit primarily from renewals.

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