Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: REWARD CUSTOMERS
CHOICE 2 SEGMENTS: LOSS LEADER SEGMENT / A LOW PRICE ON ONE PRODUCT TO OBTAIN REVENUES FROM ANOTHER PRODUCT IN A MANUFACTURING OR SERVICE BUSINESS
CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE
| No. | SIC | Year | Notes |
| 1 | 3571 | 2001 | Gateway lopped $100 off the price of its Connected Touch Pad with Instant AOL, making it $499. (Gateway also shelved plans to develop a wireless Web pad for the home.) Compaq tossed in an extra $100 rebate for its iPAQ Home Internet Appliance with MSN. Both offer $400 rebates to people who agree to pay $21.95 a month for 36 months of Internet service. Will consumer bite at $500 in rebates on a $499 appliance? |
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