Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: VOLUME PURCHASED SEGMENT / VOLUME DISCOUNT DOLLAR AMOUNT BASED ON REACHING STATED PURCHASE TARGETS
CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE
| No. | SIC | Year | Notes |
| 1 | 4512 | 2008 | Virgin America is revamping its frequent flier program. It gives frequent flier points based on ticket prices, not mileage. Also, instead of set mileage redemption prices at say 25,000 or 50,000 miles, the price in points fluctuates just as the cash price does. One point is usually more than two cents. For example, a $429 ticket priced at 18,976 points (2.26 cents per point). |
| 2 | 4813 | 1990 | To cut business long-distance bills by up to 20%, Mid-Com & other aggregators combine the phone traffic of many businesses so they appear as a single customer & therefore qualify for maximum discounts AT&T and others give to their biggest customers. |
| 3 | 4813 | 2000 | Prior to AT&T's 7 cents a minute plan consumers faced a bewildering set of pricing options for long distance phone service. AT&T charged 15 cents per minute per call with no monthly fee; or 10 cents a minute with a $4.95 monthly fee. |
| 4 | 6021 | 1988 | All check and ATM charges at B of A are waived if customers maintain a minimum balance of $500. |
| 5 | 6211 | 1998 | Fidelity charges its lowest commission to active traders who trade on the Web. Customers with at least $20,000 in their accounts who order at least 36 trades a year, pay $14.95 a trade, or a minimum of $538 a year in commissions. |
| 6 | 6211 | 2000 | Merrill Lynch offered almost unlimited commission free trading to customers who paid an annual fee of at least $1500 or 1% of assets. Etrade responded by cutting its commissions for active traders to as low as $4.95 starting with their 75th trade in a quarter. That price is at least $3 less than any other leading player. |
| 7 | 6211 | 2000 | Schwab slashed commissions for active traders in half. Trade at least 31 times in a quarter and commissions fall from $29.95 to $19.95. Trade 60 or more times and the commission falls to $14.95 per trade. |
| 8 | 6211 | 2001 | Cybertrader, which used to be known as CyberCorp and was aquired by Schwab last year, will charge users of its CyberX2 platform $9.95 a trade for customers who make at least 100 trades a month, lowering the limit for that pricing from 500 trades a month. |
| 9 | 6211 | 2001 | Cybertrader, which used to be known as CyberCorp and was aquired by Schwab last year, will charge users of its CyberX2 platform $9.95 a trade for customers who make at least 100 trades a month, lowering the limit for that pricing from 500 trades a month. |
| 10 | 6211 | 2003 | Online investing is back in vogue and brokerage firms are competitively trying to capture these traders because they are the most active base of customers. Fidelity reported 59,976 average daily traders in August, up 16% from the same month the year before. The company will cut commissions on stock and options trades in half for those who trade at least 120 times a year. Customers will only pay $8 a trade. |
| 11 | 6211 | 2005 | Even as prices fall and differences in pricing among firms narrow, many online brokerage houses keep their best deals for investors who trade frequently or have large account balances. E*Trade's most recent moves cut commissions to $6.99 for investors who make more than 500 trades a month, while TD Waterhouse in January eliminated the per share charge for large trades made by active traders who use its TradeCentral platform. Also, firms are lowering prices for investors who trade less frequently. For example, E*Trades' latest moves cut trading commissions by $5 and eliminated a $3 per order handling fee for investors who have less than $50M in assets and trade infrequently. Schwab and Fidelity lowered the threshold of which an annual account maintenance fee is charged for $25M. |
| 12 | 6211 | 2005 | E*Trade Financial unveiled a new commission schedule that brings down prices for many online stock and options trades. Serious investors with $50,000 or more will pay a base commission of $11.99. Mainstream investors with less than $50,000 will pay $14.99. It will also be easier to qualify for its "power E*Trade" active-trader service with 15 trades a quarter required, down from 27. Heavy traders will pay $7.99 or $6.00 depending on number of trades. |
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