Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: REWARD CUSTOMERS
CHOICE 2 SEGMENTS: CUSTOMER COST SAVING SEGMENT / CUSTOMERS WHO USE LESS RESOURCES IN THEIR REGULAR PURCHASES
CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE
| No. | SIC | Year | Notes |
| 1 | 2066 | 2008 | Despite slowing economic growth, soaring commodities prices this year have forced manufacturers around the world to hike the prices they charge retailers, which in turn have raised their prices on consumers. Costco is working with its suppliers to rein in costs. For example Costco typically buys 70% of the premium macadamia nuts produced by Hershey. Now Costco working with Hershey to use its smaller nuts in one of its products so that Hershey will no longer have to unload at steep discount, so Hershey can ease its pricing on premium nuts. |
| 2 | 4522 | 2006 | Charter aircards offer a cheaper option for travelers wishing to use private jets. They often seek lower prices on flights that would normally be empty as a jet is either returning to its home base or going to pick up passengers in another city. |
| 3 | 4522 | 2006 | In response to increasing demand, companies which offer fractional ownership of private jets are promoting higher-end options in which users own a stake in a particular plane. This limits the risk of demand from exceeding supply on peak travel days. CitationShares launched Citelines which offers travelers a price break for traveling on nonpeak days and a flat annual rate of operating charges. |
| 4 | 4911 | 1988 | One Florida electric company installed radio-controlled switches on water heaters & swimming pool pumps of willing homeowners, allowing devices to be turned off during peak consumption times. Others give rebates for energy-efficient refrigerators. |
| 5 | 6321 | 2006 | Direct contracting helps big employers save money by cutting out the middleman and extra layers of bureaucracy and cost. A year ago, Waste Management signed a deal with Kelsey-Seybold Clinic, a local doctors' group practice, to provide medical services for employees. Waste Management made the decision after an analyst's report found that Kelsey-Seybold's plan would be 16% cheaper than a regular insurance plan. Employees at Waste Management's headquarters can choose between a Kelsey-Seybold plan, called KelseyCare, or a Cigna PPO plan. KelseyCare can save corporate clients 15% to 30% on their health insurance costs. The savings come from better coordination of data and treatment. The idea works best in major metro areas. That's where medical groups are big enough to offer the widest range of expertise. |
| 6 | 6531 | 2006 | Buyside Realty and Seattle's Redfin offer an alternative to traditional real estate agents. Buyers research, find and visit homes on their own, turning to the limited-service broker to complete the paperwork and negotiate the price. Because they do not offer a full-service shop, buyers receive a 75% rebate on the commission, a significant discount. |
| 7 | 6531 | 2006 | In the fight between traditional real-estate brokers and their discount rivals, some consumers are getting caught in the crossfire. One likely to stir up more disputes involves the discount firms that offer rebates to buyers. The practice got a boost this year with the launch of two ambitious companies, BuySide Realty Inc. and Redfin Corp., which are promoting this concept heavily as they try to build national brands. Both encourage buyers to do part of the work in finding home; they don't offer the free car rides from house to house provided by most traditional agents. |
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