Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: VOLUME PURCHASED SEGMENT / VOLUME DISCOUNT OF PERCENTAGE OF VALUE OF PURCHASES OVER TIME
CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE
No. | SIC | Year | Notes |
1 | 4011 | 1997 | Deutsche Bahn (a railroad) introduced BahnCard. It costs $300/year, and earns customers a 50% discount on each trip. (Volume and profits up.) |
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. |
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