Reduce Price to Improve Revenues and Margins
CHOICE 3: USE COMPONENTS OF PRICE TO FURTHER LIMIT THE SPREAD OF THE LOWER PRICE
D. Change the Optional Components of Price
Provide a rebate
No. | SIC | Year | Notes |
1 | 2033 | 1987 | New England Apple Products gave a cents-off-invoice deal that gave merchants like convenience stores a rebate of 8% to 10% of the selling price. Made it easier for New England to establish shelf space. |
2 | 3577 | 2005 | Trying to stoke sales of it $199 PictureMate photo printer, Epson launched a promotion featuring a $50 rebate off the product. It teamed with camera maker Nikon to offer an additional $100 off if a consumer bought a Nikon digital camera at the same time. |
3 | 4724 | 1987 | Discount travel agency, FareDeal, charges a $25 annual membership fee and gives 5% rebates on airfare, hotels and rental cars. |
4 | 5621 | 2001 | Chico's has created good customer relations with their Passport Club which offers a permanent 5% discount for $500 spent, which has encouraged their Club members, about half of their total sales, without affecting margins. |
5 | 7372 | 1986 | Lotus in August cut the list price of its slow-selling Jazz program to $395 from $595, and the company recently began offering a $100 rebate. |
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