Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: INTRODUCTORY OFFER SEGMENT
CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE
| No. | SIC | Year | Notes |
| 1 | 2731 | 2009 | Chris Anderson, author of “The Long Tail” and Wired magazine’s editor in chief, is giving away his latest book, titled “Free: The Future of a Radical Price” and published by Hyperion Books. More precisely, he’s letting people read the entire book free until Aug. 10 on Scribd, a site that lets authors set their own price for digital copies of their works. The giveaway is not as radical as it seems. For one thing, his book is free for only a month, after which readers will have to buy it (the hardcover version retails for $17.99 on Amazon.com). Secondly, it can’t be downloaded on Scribd; readers have to read the free version online. This fits with the “freemium” model—give away the basic version to build your initial audience, then sell them premium features, such as the ability to download the book or having a physical copy. |
| 2 | 3711 | 1989 | Nissan priced its 2 luxury models at $38,000 and $23,500, just slightly above Lexus but well below similarly equipped cars from European auto makers. Most options are included as standard. |
| 3 | 3944 | 2004 | In 2004, the Lego Co. released a low-priced line of its plastic blocks. The new line, known as X-Pod, is sold in drugstores and supermarkets near the candy and magazines at the checkout, with 40 small pieces going for $3.49. |
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