Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: TARGETED COMPETITOR SEGMENT
CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE
| No. | SIC | Year | Notes |
| 1 | 3571 | 2004 | IBM and Hewlett Packard are working to link low-cost machines together over fast networks to work with movie animation for companies such as DreamWorks. They are offering these machines in a pay-as-you-go model. HP calls the concept a Utility Rendering Service, allowing users to rent out capacity as they need it rather than buying scores of machines that will sit idle for much of the time. More than half of Shrek 2 was rendered by this service, saving DreamWorks millions in hardware, software and maintenance. IBM's On-Demand push is a similar premise and the company hopes to give smaller outfits access to technology they could not afford to buy. |
| 2 | 4813 | 1996 | AT&T is drafting an aggressive flat-rate offer for all local, long-distance and in-state "toll" calls, regardless of time of day, or weekday or weekend. People close to the company say the rate could be as low as 15 cents a minute. |
| 3 | 7011 | 1992 | Ski resorts (Northstar; Winter Park Resort; Mount Bachelor) are offering flexible pricing: charging for the number of runs, by the hour, and offering locals discounts to gain and retain customers. |
| 4 | 7841 | 2004 | Blockbuster just unveiled a trial DVD-by-mail service that costs only $20 a month. If Blockbuster sticks with that figure, Netflix, which boosted its price from $20 to $22 may have to roll back its increase. |
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