Reduce Price to Improve Revenues and Margins

CHOICE 1: SELECT THE OBJECTIVE OF THE PRICE REDUCTION

3. Reward Customers

Reward customers whose cost-to-serve is lower than average

No.	SIC	Year	Notes
1	3571	1989	IBM cut prices on three of its basic PCs for customers who buy directly from the company.
2	3652	2004	In fact, Universal's move toward standardized pricing encouraged its rivals to step up their use of co-op advertising – which curried favor with retailers just as Universal was alienating them.
3	4522	2006	Charter aircards offer a cheaper option for travelers wishing to use private jets. They often seek lower prices on flights that would normally be empty as a jet is either returning to its home base or going to pick up passengers in another city.
4	5999	2004	Online photography sites like Snapfish, the online arm of District Photo Inc., and closely held Shutterfly Inc. will print digital photos for 29 cents or less – under 20 cents for those who prepay – and mail them to customers in a day or two.
5	6211	2005	Ameritrade recently cut pricing for option trades to $.75 a contract from $1.50 and has introduced a bare-bones program called IZONE that offers $5 trades to customers who place orders on line or by touch-tone phone.